Image source: Shutterstock

Highlights

  • BDR raised CAD 312,647 via private placement, issuing over 3.9 million common shares at CAD 0.08.
  • The company’s director Mel Reznick increased his holding to 10.37% through a CAD 74,434 subscription.
  • Bird River Resources to use proceeds for general corporate and working capital needs.

Bird River Resources Inc. (CSE: BDR) is a Winnipeg, Manitoba-based diversified resource company. Its primary asset is a net smelter royalty interest in a platinum-palladium property located in the Bird River Sill area of northeastern Manitoba, near the border with Ontario. The company continues to evaluate options related to its royalty interests and potential future projects, with an emphasis on natural resource opportunities within Canada.

The company has announced the closing of the first tranche of a non-brokered, best-efforts private placement financing, securing approximately CAD 312,647 in gross proceeds. The financing involved the issuance of 3,908,091 common shares priced at $0.08 per share.

The offering, which was conducted via private placement under exemptions from prospectus requirements in applicable Canadian securities laws, did not include any finders’ fees or commissions. The common shares issued in the offering are subject to resale restrictions, including a mandatory four-month and one-day hold period from the date of issuance. Proceeds from the placement will be allocated toward the company’s general corporate purposes and working capital requirements, supporting ongoing operations.

The transaction also involved a related party Mel Reznick, a director of Bird River Resources, who subscribed to a principal amount of CAD 74,434.24, acquiring 930,428 common shares as part of the offering. This investment constitutes a related party transaction under Multilateral Instrument 61-101 (MI 61-101). However, it is exempt from the formal valuation and minority approval requirements, as the fair market value of the shares issued to Mr. Reznick does not exceed 25% of the company’s market capitalization, and the company’s shares are not listed on any exchange specified under Section 5.5(b) of MI 61-101.

Mr. Reznick held 2,750,000 common shares, representing approximately 8.71% of the company’s outstanding shares on a non-diluted basis. Following the offering, his ownership increased to 3,680,428 shares, or roughly 10.37% of the total issued and outstanding common shares. Mr. Reznick acquired the shares for investment purposes and has stated he may adjust his holdings in the company depending on market conditions and other factors. This could involve either increasing or decreasing his ownership or economic exposure to the company’s securities in the future.

The completion of this first tranche is part of the company’s ongoing effort to raise funds to support its activities and maintain operational flexibility. While no specific project initiatives were named in the announcement, the use of proceeds for working capital may allow Bird River to respond to future opportunities or obligations as they arise. The company has not disclosed whether additional tranches of the private placement are expected.