Estrella Gold Corporation Closes Non-Brokered Private Placement Offering

Strategic Insights -

Estrella Gold Corporation is pleased to announce it has closed a non-brokered private placement offering, securing $1,000,000 in gross proceeds through the sale of 2,000,000 units at $0.50 per unit. This funding will be used to further develop the Company's gold exploration projects in Latin America. The financing was conducted in accordance with the rules and regulations of the TSX Venture Exchange.

Key Takeaways:

  • Estrella Gold Corporation closed a non-brokered private placement offering, raising $1,000,000 in gross proceeds.
  • The offering consisted of 2,000,000 units sold at $0.50 per unit, with each unit comprising one common share and one non-transferable warrant.
  • Each warrant entitles the holder to purchase one common share at an exercise price of $0.80 per share until December 3, 2012.
  • The warrants are callable after April 4, 2011, if the common shares trade at or over $1.00 per share for 20 consecutive trading days.
  • The number of common shares issuable pursuant to the financing is 4,000,000, with gross proceeds of up to $2,600,000 if all warrants are exercised.
  • Eligible finders received a cash fee equal to 6% of the gross proceeds and issued compensation warrants equal to 10% of the total number of units sold.
  • On closing, the Company paid $45,600 and issued 152,000 compensation warrants to the finders.
  • The securities issued will be subject to a four-month regulatory hold period from the date of closing.
  • The net proceeds of the financing will be used to further develop the Company's gold exploration projects in Latin America.

Statistics:

  • Gross proceeds: $1,000,000
  • Subscription price per unit: $0.50
  • Number of units subscribed: 2,000,000
  • Number of common shares issuable: 4,000,000
  • Exercise price per share (warrant): $0.80
  • Closing date: December 3, 2010
  • Number of compensation warrants issued: 152,000
  • Cash fee to finders: 6% of gross proceeds
  • Regulatory hold period: four months

Sources:

  • TSX Venture Exchange
  • Estrella Gold Corporation
  • Marketwire, Inc.

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