1844 Resources Inc. (TSXV: EFF), a Saskatoon-based mineral exploration company focused on copper and critical minerals in Quebec's Gaspé Peninsula, has completed the second and final tranche of its non-brokered private placement, raising an additional $325,550. Combined with the first tranche, the total gross proceeds from the placement reach $947,650. The funds are earmarked primarily for a planned 3,000-metre diamond drilling programme at the company's Sullipek East copper project, forming part of its flagship SV2 project.

Key Points

  • 1844 Resources Inc. (TSXV: EFF) is a copper and critical minerals explorer operating in the Gaspé Peninsula, Quebec.
  • The company completed the second and final closing of its non-brokered private placement, raising total gross proceeds of $947,650 across both tranches.
  • Flow-through units were priced at $0.035 each; non-flow-through units at $0.030 each; warrants carry a $0.05 exercise price valid for 24 months.
  • Investors may be watching how efficiently the company deploys proceeds toward its planned Sullipek East drilling programme.

Second Closing Unit Breakdown and Total Placement Size

In the second closing, 1844 Resources issued 6,500,000 non-flow-through units at $0.03 each, generating gross proceeds of $195,000, and 3,730,000 flow-through units at $0.035 each, generating $130,550. Across both closings combined, the company issued a total of 18,220,000 flow-through units for $637,700 and 10,331,666 non-flow-through units for $309,950, bringing total gross proceeds to $947,650. Each unit — whether flow-through or non-flow-through — comprises one common share and one half-warrant, with each whole warrant exercisable at $0.05 for 24 months from the date of issuance.

Proceeds Allocated to Sullipek East Diamond Drilling and General Operations

The company states that all gross proceeds from flow-through unit sales will fund eligible Canadian exploration expenses qualifying as critical mineral flow-through expenditures, specifically targeting the planned 3,000-metre diamond drilling programme at the Sullipek East copper project within the SV2 project. Net proceeds from non-flow-through units are allocated as follows: 40% to general working capital and corporate needs, 30% to support exploration activities, 20% to finder's fees and placement-related expenses, and 10% to investor relations and marketing activities.

Finder's Fees and Regulatory Hold Period on Issued Securities

In connection with the second closing, the company paid cash finder's commissions of approximately $2,205 and issued 42,000 broker warrants to eligible finders. Each broker warrant entitles the holder to acquire one additional common share at the $0.05 exercise price for 24 months from the closing date, subject to applicable securities laws and TSX Venture Exchange policies. All securities issued under the placement are subject to a statutory hold period of four months and one day from their date of issuance, in accordance with applicable Canadian securities legislation.