MaritimeResources Corp. has closed a nonbrokered private placement for gross proceeds ofabout C$2.5 million.
The company agreed to a 10% oversubscription, or anadditional C$225,000, from the originally announcement placement of about C$2.3million.
Maritime Resources issued 16.5 million equity units at 14cents per unit and 16.5 million royalty units at 1 cent per unit. Each equityunit consists of 1 common share and 0.5 of a nontransferable share purchasewarrant. Each whole warrant entitles the holder to buy 1 common shares at 20cents per share for 36 months.
The company will use the net proceeds to advance its100%-owned GreenBay gold project in Newfoundland and for general working capitaland corporate purposes.
Total royalties to be paid from the royalty units will becapped at 100% of the total offering plus C$985,500 raised in previous privateplacements. The payments will be made annually starting on the firstanniversary of the start date of commercial production from the Green Bayproject. Royalty payments will be funded solely from 10% of annual net cash flowfrom the project. The payments will be paid in either cash or gold, at thecompany's option.