Elton Resources closes $3.47M flow-through private placement

Elton Resources Corp. (TSXV: DBAY) has completed a non-brokered private placement of 15,780,328 flow-through units at $0.22 per unit, raising aggregate gross proceeds of $3,471,672.16, according to a press release.

Each flow-through unit consists of one flow-through common share and one-half of one flow-through common share purchase warrant. Each whole warrant is exercisable for three years from the date of issuance at $0.30 per common share on a non-flow-through basis.

The proceeds will be used to incur Canadian exploration expenses qualifying as flow-through critical mineral mining expenditures under the Income Tax Act (Canada). The company says qualifying expenditures will be incurred on or before December 31, 2027, and renounced to initial purchasers with an effective date no later than December 31, 2026.

Securities issued under the offering are subject to a hold period of four months and one day from issuance, expiring March 1, 2027. The offering remains subject to final approval from the TSX Venture Exchange.

In connection with the offering, Elton Resources paid $208,300.33 in cash finder's fees and issued 946,820 non-transferable finder's warrants, each exercisable for one common share at $0.20 for three years from issuance.

Elton Resources is a mining exploration company focused on the Darnley Bay project in the Northwest Territories, Canada.

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