Sierra Grande Minerals Inc - SIERF stock
OTC Symbol: SIERF | OTC Tier: OTCQB
Sierra Grande Minerals Inc. (OTC: SIERF, CSX: SGRO) is a Canadian natural resource exploration and development company focused on discovering and developing high-quality mineral properties. The company's primary focus is on gold exploration, but they also explore for other minerals like copper, zinc, and silver.
The company's goal is to create value for shareholders by identifying and acquiring high-quality mineral projects and advancing them through exploration and development. Sierra Grande Minerals has a strong management team with significant experience in the natural resources industry, which they believe gives them a competitive advantage in identifying and developing mineral projects.
Sierra Grande Minerals' projects are located in British Columbia, Canada, and include the Mount Benson property, which has potential for both gold and copper mineralization, and the Topley Richfield gold property, which is believed to have significant gold potential.
Sierra Grande Minerals Inc. closed a non-brokered private placement, raising $300,000 CAD through the sale of 5 million units at a price of $0.06 CAD per unit. Each unit consists of one common share in the company and one common share purchase warrant, with each warrant entitling the holder to purchase one additional common share at a price of $0.08 CAD per share, expiring on February 27, 2025. The securities issued as a result of this financing are subject to a statutory hold period. The proceeds from the private placement will be primarily used for exploration activities and general working capital. No finders' fees were paid in connection with the financing. It's also worth noting that certain directors of the company participated in the private placement, which is considered a related party transaction under Multilateral Instrument 61-101. However, this transaction will be exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as neither the fair market value of any securities issued to nor the consideration paid by such persons will exceed 25% of the company's market capitalization.
The company announced that it expects to receive up to CAD 1,999,950 in funding from the government of Canada through the Atlantic Canada Opportunities Agency (ACOA) Business Development Program. According to the press release, the funding will be used to support the company's exploration activities at the Heath Steele project, located in New Brunswick, Canada. The funds will be used to complete a drill program, conduct ground geophysical surveys, and undertake further geological mapping and prospecting. The ACOA funding is expected to cover up to 75% of the eligible project costs, with the remaining costs to be funded by the company. The press release notes that the funding is subject to the completion of a contribution agreement between the company and ACOA.
Details of the private placement:
- Raised C$2,037,900 from 13,586,000 units with a price of C$0.15 per unit
- Each Unit includes of one common share of stock in Sierra Grande and one purchase warrant for a share of stock
- The warrant price is C$0.20 per common share
- Warrants expire in three years from the closing of the private placement
- The warrant conversion price will increase by C$0.05 in the second and third years after issue
- An acceleration clause allows the company to force exercise of the warrants no earlier than one year after issue, if the stock price closes at or above C$0.60 per share
- Warrants must be exercised within 30 days of notice
According to a press release from PR Newswire on February 19, 2021, Sierra Grande Minerals Inc. completed a non-brokered private placement that was oversubscribed. The private placement raised $2,300,000 CAD through the sale of 11,500,000 units at a price of $0.20 CAD per unit. Each unit consisted of one common share and one-half of a common share purchase warrant, with each full warrant exercisable at a price of $0.30 CAD per share for a period of two years from the date of issuance. The proceeds from the private placement are intended to be used for general working capital purposes and to advance the company's exploration projects.
- Stock Watch. Sierra Grande closes $300,000 private placement. February 23, 2023.
- MarketScreener. Sierra Grande Minerals Inc. announced that it expects to receive CAD 1.99995 million in funding. March 8, 2022.
- PR Newswire. Sierra Completes Oversubscribed Non-Brokered Private Placement. February 23, 2021.