Canada Fluorspar Inc. is planning to raise up to $2m. via a private placement to ensure sufficient funding till the year end for the further development of its fluorspar property in St. Lawrence in the province of Newfoundland and Labrador, Canada.
The non-brokered private placement is expected to raise up to $2m. comprising common shares at a price of $0.35 per share. Of this, company “insiders” will be subscribing for more than 25% of the private placement which is expected to close by 16 June, 2009.
Lindsay Gorrill, president and CEO of Canada Fluorspar, said that the proceeds of the private placement will be used as working capital to fund the continued work program on the company’s fluorspar property at St. Lawrence.
It is understood that the placement is a measure to secure funding to cover overheads till the end of the year before the recession worsens further. The latest...