Homestake Resource (TSX-V:HSR, StockForum), a Vancouver-based mineral exploration company engaged in the acquisition, exploration and development of natural resource properties in Canada, announced today that the company had was going to issue 24 million units at $0.05 per unit for gross proceeds of $1.2 million.
Each unit is comprised of a common share and one share purchase warrant. The warrant then can be exercised to buy one common share at $0.05 per warrant for three years after closing.
According to the news release, Homestake also plans to issue 1.0 million flow-through units to Canadian resident investors at $0.05 per flow-through unit for gross proceeds of $50,000. Again, each flow-through unit consists of one flow-through share and a half warrant. The warrants can be can be exercised to purchase one common share for eighteen months after closing at $0.10 per warrant.
Gross proceeds are to be utilized in the exploration of Kinskuch project located in northwestern British Columbia. However, Homestake reserves the right to spend the monies on any other eligible Canadian exploration company.
Exploration will be focused on three targets: Esperanza target, where high-grade gold was mined in the early 20th century, FH target, which has little historic drilling, and Illiance River target, which has been the focus of exploration by the company since 2011.
Homestake was in the news recently when the company amended their 2014 exploration plan with Agnico Eagle.
Shares rose 25% on the news to $0.05 per share.
Currently there are 38.5m outstanding shares with a market cap of $1.9 million.