Funds generated by the arrangement of two private placements will be used by Copperstone Resources (VSE) to pay a portion of its existing debt and to make the required option payments for the Boleo copper-cobalt project in Baja California Sur, Mexico.
The remaining balance will be held in reserve for a drilling program planned later this summer.
A private placement to insiders will comprise 600,000 units at 50 cents per unit, while a brokered private placement entails 800,000 units at the same price. Each unit is made up of one common share and one two-year warrant.
Each warrant entitles the purchase of one additional share at 50 cents in the first year or 57.5 cents in the second year. A total of $700,000 will be generated in proceeds.
Copperstone is also negotiating to settle $500,000 in debt by issuing shares at price of 60 cents per share. The company has approximately 6.9 million shares outstanding. The Vancouver-based junior is earning an 80% interest in the Boleo project from Island-Arc Resources (VSE).
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