Toronto-based Chutine Resources (VSE) recently entered into two private placement agreements to raise $2.4 million for exploration on a 7,000-acre gold/copper property in Mexico’s Sonora Province. The property is owned and operated by Chutine’s 49% owned Mexican affiliate Minera Sanex S.A. de C.V.
Under the agreement, Chutine is issuing 5,333,333 units, each of which is comprised of one common share and 1-common-share purchase warrant.
Each share purchase warrant, which is non-transferable, entitles the holder to buy one additional common share by Dec. 31 for 75 cents if exercised before Sept. 30, or 90 cents if exercised afterwards.
From the proceeds, Chutine will advance about $1.2 million by way of a secured loan to Minera Sanex. An additional $1 million is to be spent on the San Antonio de La Huerta property, according to Chutine which has signed a letter of intent to purchase the remaining 51% interest in Minera Sanex.
Subject to regulatory approval, Chutine plans to use the remaining proceeds for general corporate purposes. The placement was made with European Institutional investors based in France.
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