Yellowhead Mining Inc. announced on Dec. 27 that it had completed an additional portion of its previously announced non-brokered private placement of common shares of the company.
An aggregate of 1,825,689 flow-through common shares were issued to various qualified investors at an issue price of $0.70 per FT share. Gross proceeds from the closing of this portion of the private placement totalled approximately $1.28 million. The company paid finders’ fees equal to five per cent of the gross proceeds.
Proceeds received by the company for the sale of the FT shares will be used for the exploratory drilling program announced by the company in a news release issued on Dec. 7, 2012.
After this closing, there are 63,450,170 issued and outstanding common shares of the company.
Flow-through shares are shares issued by Canadian oil and mining companies that pass the tax breaks available for exploration onto investors. They typically sell at a premium over the shares’ usual market value.
Yellowhead Mining’s principal project is a proposed open pit copper-gold-silver mine to be located at Harper Creek, about 10 km southwest of Vavenby.