1844 Resources closes private placement raising $947,650

1844 Resources Inc. (TSXV: EFF) has completed the second and final tranche of its non-brokered private placement, raising an additional $325,550 to bring the total aggregate gross proceeds to $947,650, according to a press release.

In the second closing, the company issued 6,500,000 Hard Dollar Units at $0.03 per unit for gross proceeds of $195,000, and 3,730,000 Flow-Through Units at $0.035 per unit for gross proceeds of $130,550.

Across both closings, the company issued a total of 18,220,000 Flow-Through Units for aggregate gross proceeds of $637,700 and 10,331,666 Hard Dollar Units for aggregate gross proceeds of $309,950.

Each unit consists of one common share and one-half of one share purchase warrant. Each whole warrant allows the holder to acquire one additional share at $0.05 per share for 24 months from the date of issuance.

Proceeds from the Flow-Through Units will fund eligible Canadian exploration expenses, including a planned 3,000-metre diamond drilling program at the company's Sullipek East copper project in the Gaspé Peninsula of Québec. Net proceeds from Hard Dollar Units are allocated as follows: 40% for general working capital, 30% for exploration activities, 20% for finder's fees and offering expenses, and 10% for investor relations and marketing.

In connection with the second closing, 1844 Resources paid approximately $2,205 in cash finder's fees and issued 42,000 broker warrants to eligible finders, exercisable at $0.05 per share for 24 months.

All securities issued are subject to a statutory hold period of four months and one day from the date of issuance under Canadian securities laws.

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