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Loyalist Exploration Closes $1M Tranche, Settles $113K Debt in Shares

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PNGCCA$0.0350 16.67%

Loyalist Exploration Limited (CSE:PNGC) has concluded its non-brokered private placement after raising $1.0 million in a first tranche. The company issued 25.0 million shares at $0.04 per share. In addition, Loyalist issued 2,832,125 shares at the same price to settle $113,285 in debt, including $45,000 owed to two executives.

The transactions clear liabilities and secure cash while adding new shares to the market. Debt restructuring reduces cash strain on the business, though the share issuances expand total equity dilution. Finders received $37,200 alongside 930,000 warrants with an exercise price of $0.075, creating potential future equity issuance.

Investors will look toward Loyalist's next steps on its Tully project. The capital raised is set to support preliminary economic assessment milestones, resource work, and permitting progress.

Key points

  • Loyalist Exploration Limited raised $1.0 million by issuing 25.0 million shares at $0.04 each, ending its private placement.
  • The company issued 2,832,125 shares to clear $113,285 in debt, which includes $45,000 owed to two executives.
  • Finders were paid $37,200 and granted 930,000 warrants with an exercise price of $0.075 per share.
  • Proceeds from the financing will fund resource work, preliminary economic assessments, and permitting for the Tully project.

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Questions and answers

How much money did Loyalist Exploration raise in its private placement?

Loyalist Exploration raised $1.0 million in its first tranche before ending the private placement.

How did Loyalist Exploration settle its debt?

Loyalist Exploration issued 2,832,125 shares at $0.04 per share to settle $113,285 of debt, including $45,000 owed to two company executives.

What will Loyalist Exploration use the raised proceeds for?

The company plans to use the proceeds to fund permitting milestones and work on the Tully resource and preliminary economic assessment.