High Tide Resources Closes $8.3M Private Placements to Advance Labrador West Iron Project
High Tide Resources Corp. (CSE: HTRC) has announced the closing of its concurrent non-brokered private placements for aggregate gross proceeds of $8,327,000. The financing will support the company's Labrador West Iron Project in Newfoundland and Labrador, Canada.
Overview
The private placements comprised three components: 7,500,000 Listed Issuer Financing Exemption ("LIFE") HD units priced at $0.20 per unit, 22,500,000 charity flow-through ("CFT") units priced at $0.27 per unit, and 3,760,000 non-LIFE units priced at $0.20 per unit. Each unit consists of one common share (or one flow-through share in the case of CFT units) and one-half of one common share purchase warrant, with each whole warrant exercisable at $0.30 per share for a period of 24 months from the date of issuance.
Key Highlights
- Aggregate gross proceeds of $8,327,000 raised across three concurrent non-brokered placements
- CFT unit proceeds of approximately $7,575,000 designated for Canadian exploration expenses at the Labrador West Iron Project, including a drill program, metallurgical testwork, and an environmental baseline study
- LIFE HD and non-LIFE unit proceeds allocated to general corporate and working capital purposes
- Common shares issued under LIFE HD and CFT units carry no hold period; non-LIFE unit securities are subject to a four-month-and-one-day hold period
Insider Participation
Directors and insiders of the company subscribed for an aggregate of 2,470,000 units. The insider participation constitutes a related party transaction under Multilateral Instrument 61-101. The company has relied on the exemption from formal valuation and minority shareholder approval requirements under sections 5.5(a) and 5.7(1)(a) of MI 61-101, as the aggregate insider participation does not exceed 25% of the company's fair market value.
Finder Compensation
In connection with the placements, the company paid eligible finders an aggregate cash commission of $508,250 and issued an aggregate of 1,991,500 finder warrants. Each finder warrant entitles the holder to acquire one non-LIFE unit at a price of $0.20 per unit for a period of 24 months from the date of issuance. PowerOne Capital Markets Limited acted as finder.
Use of Proceeds
The net proceeds from the CFT units will be used to conduct a drill program, advance metallurgical testwork, and complete an environmental baseline study at the Labrador West Iron Project, with qualifying expenditures to be incurred before December 31, 2027, and renunciation effective by December 31, 2026. Proceeds from the LIFE HD and non-LIFE units will be used for general corporate and working capital purposes.
What to Watch Next
- Drill program commencement at the Labrador West Iron Project
- Metallurgical testwork results and environmental baseline study completion
- Deployment of general working capital toward ongoing project advancement
About High Tide Resources Corp.
High Tide Resources Corp. is focused on mineral projects critical to infrastructure development. The company owns a 100% interest in the Labrador West Iron Project, which hosts a NI 43-101 compliant Inferred iron resource of 654.9 Mt grading 28.84% Fe, pit-constrained for open-pit mining and located adjacent to IOC's Carol Lake Mine in Labrador City, Newfoundland and Labrador. The company also owns a 100% interest in the Lac Pegma copper-nickel-cobalt deposit located 50 kilometres southeast of Fermont, Quebec. The technical report for the Labrador West Iron Project was filed on April 6, 2023. Steve Roebuck, P.Geo., CEO and Director of the company, is the qualified person who has approved the technical information in this release in accordance with NI 43-101 standards.
For additional details, visit www.hightideresources.com.
ArcStone Financial Pulse Team
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