SalazarResources Ltd. said April 6 that it plans to raise US$5.8 millionthrough a private placement and a royalty sale to advance the copper project in Ecuador.
The company plans to sell units to raise US$1 million and a2% net smelter returns royalty interest in Curipamba for US$4.8 million.
"In these difficult markets, we are extremely pleasedto have concluded these negotiations," said President and CEO FredySalazar.
Units sold will be priced at 6 Canadian cents, with eachunit comprising a common share and 0.5 of a share purchase warrant. Each fullwarrant will be exercisable at 12 cents for two years.
Resources Capital Fund VI LP will be purchasing US$820,000,with the balance to be acquired by two arm's-length investors who have alreadypaid for the units.
To settle about US$1 million in outstanding debt, Salazarwill also issue 22,737,832 units on the same terms as the placement.
A further 5,589,344 common shares will also be issued toforgive US$258,726 in unpaid compensation.
On closing of the placement, Resources Capital Fund maynominate a board member.