Calibre Mining Corp. announced a nonbrokered private placement of up to 11,363,700 units at 44 Canadian cents each to raise up to C$5.0 million.

Before the private placement closes, the company will consolidate its outstanding common shares on a 10-for-1 basis.

Each unit will consist of one common share and one purchase warrant, which will entitle the holder to acquire an additional common share for 95 cents within five years of closing.

The company said Oct. 5 that it plans to use the proceeds for exploration, project generative activities, loan repayment and general working capital.

Calibre expects to close the placement in the last week of October.