UrbanGold Minerals Inc. closed a C$2.5 million IPO on the TSX Venture Exchange, it said Dec. 28.

Investors subscribed for about 83% of the maximum size of the offering.

The company sold a total of 10,805,500 units at 10 cents apiece, with each unit consisting of 1 and 0.5 of a share purchase warrant. Each whole warrant can be exercised for a common share at 13 cents within a year. A total of 10,764,500 flow-through shares were sold at a price of 13 cents apiece.

UrbanGold's shares will start trading on the TSX Venture Exchange under the UGM ticker on Dec. 31.

The company intends to use the proceeds to fund the phase-one exploration work on the Monaco property in Quebec, as well as for general corporate purposes.