Following the raising of C$7.7 million from a previously reported private placement, Darnley Bay Resources Ltd. completed the acquisition of Tamerlane Ventures Inc.'s Pine Point zinc property in Canada's Northwest Territories.
The company increased the placement from C$7.5 million to C$10 million earlier in December.
Darnley Bay closed the first tranche of the offering, issuing 25 million units at 20 cents apiece for gross proceeds of C$5 million and 10,635,400 flow-through common shares at 25 cents apiece for C$2.7 million.
Each unit consists of 1 common Darnley Bay share and 0.5 of a share purchase warrant, with each whole warrant exercisable at 30 cents per share for a 24-month period from closing.
The company will use the remaining funds to complete a preliminary economic analysis on the Pine Point project, for exploration and drilling, and for working capital purposes, according to its Dec. 20 news release.
Darnley Bay signed a binding letter of intent in October to acquire the Pine Point property in a cash-and-stock deal.
Under the deal, the company will pay C$3.0 million and issue 26,250,000 shares to KSV Kofman Inc., acting as the court-appointed receiver of Tamerlane, to acquire the project, subject to certain conditions.
The past-producing Pine Point property comprises 42 known zinc-lead deposits over a strike length of approximately 68 kilometers.