Alphamin Resources (TSX-V:AFM, StockForum), a Vancouver-based entity engaged in the acquisition, exploration and development of mineral properties, announced today that the company had closed a $13.5 million non-brokered private placement.
The placement was originally announced at the beginning of December and involved a single buyer, Tremont Master Holdings. As of the December 26th close, Tremont owned approximately 39.81% of Alphamin on an undiluted basis.
Both companies will enter into a preemptive rights agreement on close, granting Tremont the right to participate in any subsequent equity offering by Alphamin on a pro rata basis. Tremont will retain this right until it and its affiliates own less than 20% of the company or five years have passed from the date of closure, whichever comes earlier.
According to today's news release, all shares issued in this transaction are subject to a four-month holding period from the date of close.
Gross proceeds are to be utilized to advance exploration work and development at Alphamin's Bisie Tin Project located in the Democratic Republic of Congo, where the company reported in a recent news release that it was, “confident of identifying significant high grade mineralisation down to considerable depths and it believes that only the upper portion of the mineralised body has been drilled to date.”
Alphamin was in the news when the company released initial inferred mineral resource totals for the Gecomines Prospect at the end of November.
Shares climbed 22.22% on the news to $0.22 per share.
Currently there are 152.0m shares outstanding with a market cap of $33.4 million.