Record Resources Inc. (TSXV: REC), a Calgary-based exploration and production company active in Gabon and Ontario, has announced a non-brokered private placement offering of up to $200,000 in aggregate gross proceeds. The offering consists of units priced at $0.06 each, with each unit comprising one common share and one warrant. The raise is intended to support working capital and general corporate purposes, and remains subject to TSX Venture Exchange approval.

Key Points

  • Record Resources Inc. (TSXV: REC) is a Calgary-based oil, gas, and natural hydrogen exploration company
  • The company announced a non-brokered private placement offering of up to $200,000 at $0.06 per unit
  • Each unit includes one common share and one warrant exercisable at $0.09 for 30 months from issuance; all securities carry a four-month-and-one-day hold period
  • Investors may be watching for confirmation of TSXV approval and the eventual closing of the offering

Unit Structure and Warrant Terms in Record Resources' Offering

Each unit in the offering is priced at $0.06 and consists of one common share and one common share purchase warrant. Each warrant entitles the holder to acquire one additional common share at an exercise price of $0.09 per share for a period of 30 months following the date of issuance. All securities issued under the offering will be subject to a statutory hold period of four months and one day from issuance. The offering is available to accredited investors across Canadian provinces and, where lawfully permitted, in other jurisdictions including the United States under applicable private placement exemptions.

Finder's Fees and Commission Structure

Record Resources has disclosed that finder's fees will be payable in connection with the offering. The company will pay a cash fee equal to 7.0% of the aggregate gross proceeds raised through any finder's efforts. In addition, the company will issue finder's warrants equal to up to 7.0% of the number of units purchased through finders. Each finder's warrant entitles the holder to purchase one common share at an exercise price of $0.06 for a period of 30 months following the date of issuance, consistent with the unit pricing of the offering itself.

Proceeds Directed to Working Capital Amid Gabon and Ontario Operations

The company states that net proceeds from the offering will be used for working capital and general corporate purposes. Record Resources describes itself as a carried partner in a consortium developing oil and gas projects in Central Gabon's Ngulu Block, as well as the holder of natural hydrogen exploration assets in Ontario, Canada. The closing of the offering remains subject to customary conditions, including receipt of all necessary TSX Venture Exchange approvals. The immediate share price impact was not clear from available public information.