Gelum Resources arranges $1.5 million private placement, names new CEO

Gelum Resources Ltd. (CSE: GMR) (OTCQB: GMRCF) arranged a non-brokered private placement to raise up to $1.5 million through the issuance of up to 6,521,739 units at $0.23 per unit, according to a company statement.

Each unit consists of one common share and one-half of one common share purchase warrant. The warrants allow holders to purchase additional common shares at $0.38 per share for 24 months from closing. The warrant expiry may be accelerated if the company's shares close at or above $0.76 for at least 20 consecutive trading days on the Canadian Securities Exchange.

Finder's fees of 7% cash and 7% finder's warrants may be paid to qualified finders. All securities issued will have a four-month and one-day hold period in Canada from closing. The company plans to use gross proceeds for working capital.

The Vancouver-based company also announced changes in its executive leadership. Hendrik van Alphen stepped in as Chief Executive Officer following David Smith's resignation as President. Stuart Ross was appointed Chief Financial Officer, replacing Sead Hamzagic who resigned from the CFO position.

The securities have not been registered under the United States Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption.

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