Group Eleven Resources closes C$5.75M private placement

Group Eleven Resources Corp. (TSXV: ZNG) completed a private placement raising C$5.75 million through the issuance of 17,968,750 common shares at C$0.32 per share, the company announced. The offering included the full exercise of underwriters' option for C$750,000.

Cormark Securities Inc. and Beacon Securities Limited served as underwriters for the transaction. The company paid the underwriters a cash commission of C$314,550 and issued 887,812 compensation warrants exercisable at C$0.32 until July 31, 2027.

Group Eleven plans to use the net proceeds to expand its exploration drill program at the Ballywire project from approximately 5,000 meters to approximately 25,000 meters, with remaining funds allocated for working capital and general corporate purposes.

The shares were offered in Canada under the listed issuer financing exemption and accredited investor exemption provisions. Shares issued to Canadian purchasers under the listed issuer financing exemption are not subject to a hold period, while shares issued under the accredited investor exemption carry a four-month and one-day hold period.

A company director acquired 156,250 shares in the offering, constituting a related party transaction. Glencore Canada Corporation did not exercise its participation right and maintains an approximate 14.1% ownership interest in the company following completion of the offering.

Group Eleven operates the Ballywire zinc-lead discovery in Ireland, which the company announced in September 2022. The project is located 20 kilometers from the company's Stonepark zinc-lead deposit.

You May Also Be Interested In

• Scorpio Gold closes $10.8M public offering, issues 43.2M shares
• Benchmark Reiterates Buy Rating on Cal-Maine Foods (CALM)
• U.S. lawmakers propose AI "kill switch" for rogue models amid OpenAI incident