Canadian Royalties to raise up to $3 million

Canadian Royalties (CZZ-V) has singed a letter of intent to have Dundee Securities act as agent for a private placement of 3.5 million shares.

Under the deal, up to 2.25 million flow through shares will be placed at 90 apiece, with up to another 1.25 million units going at 80 apiece. One unit comprises one share plus half a purchase warrant. One warrant allows the holder to buy one share for 90 for 15 months after closing.

Also, Dundee will be paid a commission of 6.5% of the gross proceeds from the offering, and will receive an agent’s option to buy, for $1 apiece, shares equal to 6.5% of the total number sold under the offering. The option runs for 2 years after closing.

The offering is expected to close on June 18.

Proceeds from the flow through shares are earmarked for exploration on the company’s Nunavik nickel-copper-platinum-palladium properties.

The company also announced that it recently received two $75,000 grants via the Ministere des ressources naturelles du Quebec mineral exploration assistance program. The grants offset exploration spending on the company’s projects in that province during 2001.