The company is organizing a placement of 2,000,000 units at a price of C$0.25 per unit to raise proceeds of C$500,000.
Any money raised will be used to advance the work at the Esquilache project and go towards drilling, sampling, geological mapping and feasibility studies as well as metallurgical and mine permitting.
Each unit will consist of a single common share in the capital of Nubian Resources and one-half a transferable share purchase warrant.
READ: Nubian Resources bolsters senior management as it progresses towards Esquilache project acquisition
Each whole warrant, in turn, will allow its owner to purchase one additional common share in Nubian’s capital for a period of 24 months from the closing date, at a purchase price of C$0.40 per share. The warrant price, however, depends on the closing price of Nubian’s common shares trading higher than C$0.50 for 20 or more consecutive trading days.
All securities issued as part of the private placement are to be subject to a four-month and one-day “hold” period under Canadian securities law.
Nubian Resources recently introduced some senior management changes at it Esquilache project. Two months ago, William Brown was hired as its general manager for South America and Ashley Martin as its business developer.
In morning trade, Nubian Resources shares were flat at C$0.24 in Toronto.