ROUYN-NORANDA, QC, Aug. 7, 2020 /CNW Telbec/ - X-Terra
Resources Inc. (TSXV: XTT) (FRANKFURT: XTR) is pleased to announce
the closing of a strategic non-brokered private placement in which
it issued 7,000,000 units at a price of $0.10 per unit, for gross proceeds to X-Terra of
$700,000. Each of the 7,000,000 units
comprises of one common share and one common share purchase
warrant. Each warrant entitles its holder to acquire one additional
common share of X-Terra at a price of $0.15 until August 7,
2022. X-Terra intends to use the proceeds from the private
placement for exploration on certain of its mining exploration
properties in Québec and New
Brunswick, and for working capital purposes.
One (1) insider of X-Terra participated in the placement for
proceeds of $100,000. This insider
subscribed to the Units under the same terms as the other
investors. The participation of this insider is exempt from the
formal valuation and shareholder approval requirements as per
Sections 5.5(a) and 5.7(1)(a) of Regulation 61-101 respecting
Protection of Minority Holders in Special Transactions. The
exemption is based on the fact that the market value of such
participation or the consideration paid by such insider does not
exceed 25% of the market value of the Company.
In connection with the private placement, X-Terra Resources paid
cash commissions to three securities dealers in the aggregate
amount of $31,850. In addition,
X-Terra Resources issued finders' options to the securities dealers
entitling them to acquire up to an aggregate of 318,500 additional
common shares of X-Terra at a price of $0.10 per share until August 7, 2022.
As a result of the closing of the private placement, there are
70,352,553 common shares of X-Terra issued and outstanding. Under
applicable securities legislation, the securities issued in the
private placement are subject to a four-month hold period, expiring
on December 8, 2020.
About X-Terra Resources Inc.
X-Terra is a resource company focused on acquiring and exploring
precious metals properties in Canada.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of the release.
SOURCE X-Terra Resources Inc.