Stardust Solar closes final tranche, raises $832,880 in total

Stardust Solar Energy Inc. (TSXV: SUN) (OTCQB: SUNXF) (FSE: 6330) has completed the final tranche of its non-brokered private placement, issuing 4,617,600 units at $0.075 per unit for gross proceeds of $346,320, according to a company statement.

Combined with the initial tranche, the private placement generated aggregate gross proceeds of $832,880.93 through the issuance of 11,105,079 units in total. Each unit consists of one common share and one warrant, with each warrant exercisable at $0.10 per share for 18 months from the closing date of the first tranche.

The company paid finder's fees of $20,605.90 in cash and 274,745 finder warrants in connection with the final tranche. Each finder warrant allows the holder to acquire one share at $0.10 for 18 months from the final tranche closing date.

An insider participated in the final tranche, acquiring 266,000 units, constituting a related party transaction under Multilateral Instrument 61-101. The company said it is relying on exemptions from formal valuation and minority shareholder approval requirements, as the value of securities issued to the insider does not exceed 25% of the company's market capitalization.

Stardust Solar said it intends to use the net proceeds to repay outstanding principal and accrued interest on its senior secured convertible debenture units, advance its utility-scale energy project in Zambia, and for general working capital purposes. All securities issued are subject to a four-month-and-one-day statutory hold period under Canadian securities laws and TSX Venture Exchange policies.

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