MurchisonMinerals Ltd. said July 21 that it plans to raise up to C$2 millionthrough a nonbrokered private placement and concurrently undertake a shareconsolidation on the basis of 1 post-consolidation share for 10pre-consolidation shares.
The share consolidation has been approved by the company'sshareholders and under the financing, Murchison proposes to issue up to 4million post-consolidation units at 25 Canadian cents apiece and up to 3,333,333post-consolidation flow-through units at 30 cents apiece.
Each unit will consist of 1 post-consolidation share and 1share purchase warrant, exercisable for 1 common Murchison share at 30 centsfor a 24-month period from closing. Meanwhile, each flow-through unit willconsist of 1 post-consolidation flow-through share and 0.5 of a warrant.
The expiry of the warrants is subject to an accelerationclause.
Proceeds from the financing are earmarked for exploration atthe company's Brabant-McKenziezinc-copper-silver deposit in Saskatchewan and for general working capital.