Great Atlantic Resources Corp. (TSXV: GR) has announced the closing of a non-brokered private placement financing raising gross proceeds of $250,000 through the issuance of Flow-Through units. The placement was completed with a single subscriber and is intended to fund mineral exploration activities across the company's Atlantic Canada properties. The transaction is subject to final approval by the TSX Venture Exchange, making it a development investors in the junior exploration sector will be watching closely.

Key Points

  • Great Atlantic Resources Corp. (TSXV: GR) is a Vancouver-based Canadian mineral exploration company focused on Atlantic Canada.
  • The company closed a $250,000 non-brokered private placement consisting of 3,571,430 Flow-Through units priced at $0.07 per unit.
  • Each unit includes one flow-through common share and one-half share purchase warrant exercisable at $0.07 for 24 months; securities carry a hold period expiring January 30, 2027.
  • Investors will be watching for TSX Venture Exchange final approval and deployment of proceeds toward eligible Canadian exploration expenses.

Flow-Through Unit Structure and Warrant Terms

The private placement comprised 3,571,430 Flow-Through units at $0.07 per unit, with each unit consisting of one common share qualifying as a flow-through share under subsection 66(15) of the Income Tax Act (Canada) and one-half share purchase warrant. Each whole warrant entitles the holder to acquire one additional non-flow common share at $0.07 for 24 months following closing. All securities issued under the offering are subject to a hold period expiring January 30, 2027, as disclosed in the company's announcement.

Finder's Fee Paid to Castlewood Capital Corporation

In connection with the offering, Great Atlantic Resources paid a cash commission of $20,000 and issued 285,714 finder warrants to Castlewood Capital Corporation. The finder warrants carry an exercise price of $0.07 and are valid for two years from closing. The release states that both the closing of the private placement and the payment of finder's fees remain subject to final approval by the TSX Venture Exchange, meaning the transaction has not yet received full regulatory clearance at the time of the announcement.

Proceeds Directed Toward Atlantic Canada Mineral Property Exploration

Net proceeds from the offering are designated for exploration expenses on the company's mineral properties in Atlantic Canada. The release states that the gross proceeds will be used to incur eligible resource exploration expenses qualifying as Canadian exploration expenses and as flow-through critical mineral mining expenditures under subsection 127(9) of the Income Tax Act (Canada). Great Atlantic's current portfolio focuses on gold, copper, zinc, nickel, cobalt, antimony, and tungsten targets within Atlantic Canada, a region the company describes as a priority exploration jurisdiction.