Elton Resources plans $5M flow-through private placement

Elton Resources Corp. (TSXV: DBAY) announced a non-brokered private placement of up to 22,727,273 flow-through units at $0.22 per unit, seeking gross proceeds of up to $5,000,000.

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

Proceeds will fund Canadian exploration expenses qualifying as flow-through critical mineral mining expenditures under the Income Tax Act (Canada). The company stated expenditures will be incurred on or before December 31, 2027, with renunciation to initial purchasers effective no later than December 31, 2026.

Securities issued under the offering are subject to a four-month-and-one-day hold period under Canadian securities law. Closing is contingent on TSX Venture Exchange approval, among other conditions, and may occur in one or more tranches.

The company may pay finders fees of up to 6% in cash and non-transferable warrants equal to up to 6% of units sold, with finder warrants exercisable at $0.20 per share for three years, subject to TSXV approval.

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

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