BARSELE AND GOLD LINE CLOSE FIRST TRANCHE OF PRIVATE PLACEMENT
Barsele Minerals Corp. has closed the first tranche of its $1-million private placement for subscription receipts of Barsele, previously announced in a joint press release with Gold Line Resources Ltd. on Dec. 13, 2023. The first tranche consisted of the sale and issuance of 5,122,166 subscription receipts at a price of 15 cents per unit for aggregate gross proceeds of $768,325.
Each subscription receipt will entitle the holder thereof to receive, for no additional consideration and without further action on part of the holder thereof, at the effective time of the transaction, one unit of Barsele. Each unit will consist of one Barsele share and one-half of one common share purchase warrant. Each warrant will entitle the holder thereof to purchase one Barsele share at a price equal to 25 cents per Barsele share for a period of two years following the date of issuance of the warrant. The subscription receipts, sub receipt shares, warrants and warrant shares issued or issuable pursuant to the first tranche will be subject to a statutory four-month hold period following closing of the first tranche.
The gross proceeds of the concurrent private placement will be held in escrow pending the satisfaction of the escrow release conditions, including closing of the arrangement involving Barsele and Gold Line, pursuant to which Barsele will acquire all of the issued and outstanding common shares of Gold Line by way of a statutory plan of arrangement (see joint press release dated Dec. 13, 2023), and the satisfaction of certain other customary conditions.
Barsele intends to use the net proceeds of the offering for expenses related to the transaction, working capital and for general corporate purposes. The second and final tranche of the offering is expected to close before Jan. 26, 2024.
Barsele has agreed to pay finders’ fees to certain finders in respect of those purchasers under the offering introduced to Barsele by such finders. Subject to the approval of the TSX-V, in connection with the closing of the first tranche, Barsele will hold in escrow finder’s fee of $27,121 and 180,810 finder’s warrants payable to Haywood Securities Inc., finder’s fee of $3,465 and 23,100 finder’s warrants payable to Odlum Brown Ltd., and finder’s fee of $656 and 4,375 finder’s warrants payable to Canaccord Genuity Corp. The finders’ warrants have the same terms as the warrants described above.
About Barsele Minerals Corp.
Barsele is a Canadian-based junior exploration company managed by the Belcarra group, comprising highly qualified mining professionals. Barsele’s main property is the Barsele gold project in Vasterbottens Lan, Sweden, a joint venture with Agnico Eagle. A National Instrument 43-101 technical report on the Barsele project with an effective date of Feb. 21, 2019, was filed on SEDAR+ on April 2, 2019. This NI 43-101 technical report and mineral resource estimate (amended) for the Barsele property was modified and filed on SEDAR+ on Dec. 16, 2020.
About Gold Line Resources Ltd.
Gold Line is focused on acquiring mineral properties with exceptional exploration potential in the most prolific gold-producing regions of Sweden and Finland, both regarded as top-tier mining jurisdictions and emerging exploration frontiers. Both countries possess prospective mineral endowments, stable tenures, straightforward permitting, favourable tax regimes and supportive geopolitical landscapes. Gold Line’s Swedish projects are located in the Gold Line mineral belt and Skelleftea belt of north-central Sweden, and the Mjosa-Vanern belt in the southwest. In Finland, Gold Line holds the entire underexplored Oijarvi greenstone belt located in the north of the country.
