Obviously management has completed the first tranche in a major way. Not sure how much more funding they are attempting to raise.
Hopefully this money will allow them to complete the major take over of their targeted project.
"(TSXV: FURA) (OTC: FUGMF) (FRA: BJ43) has closed its first tranche of a previously announced non-brokered private placement financing of common shares (the “Offering”) for gross proceeds of C$26,688,602 (the “First Tranche”). For more information on the Offering, please see Fura’s press releases dated May 15, 2019, June 27, 2019 and August 15, 2019, and the Company’s management information circular dated July 2, 2019 (the “Circular”), each of which is available under Fura’s profile on SEDAR at www.sedar.com.
Pursuant to the First Tranche, Fura issued 106,754,408 common shares (the “Shares”) at a price of C$0.25 per Share. The Shares were issued at a premium of 47% to the closing price of the Shares on the TSX Venture Exchange (the “Exchange”) on October 9, 2019.
The net proceeds of the First Tranche are expected to be used for: (i) the advancement of Fura’s Coscuez emerald project in Colombia and ruby assets in Mozambique, (ii) the closing of the Company’s ongoing acquisition of a 100% interest in ruby prospecting licence no. 5572L in the Montepuez District of Cabo Delgado province in Mozambique previously announced on July 26, 2018 and August 22, 2019, and (iii) general corporate purposes.
The Shares issued in connection with the First Tranche are subject to a statutory four-month hold period, which expires on February 11, 2020, and the closing of the First Tranche is subject to receipt of final approval of the Exchange. No finder fees were paid in connection with the Offering, including the First Tranche.
Certain directors, officers, employees and consultants of the Company have subscribed for Shares pursuant to the First Tranche (the “Insider Participation”). The Insider Participation will be considered to be a “related party transaction” as defined under Multilateral Instrument 61-101 (“MI 61-101”). The Insider Participation is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101. In addition, a related party has also subscribed for Shares pursuant to the First Tranche, as described in the Circular (the “Related Party Participation”). Minority shareholder approval for the Related Party Participation was previously obtained by Fura at it's annual and special meeting of shareholders held on August 2, 2019. The Related Party Participation is exempt from the formal valuation requirement of MI 61-101