Pele Mountain Resources Inc. announced the closing of a non-brokered private placement offering comprised of 1,757,029 units at a price of $0.05 each for aggregate gross proceeds of $87,851.45. Each Unit consists of one (1) common share of the Corporation issued on a "flow-through" basis and one (1) warrant, with each Warrant exercisable to acquire one (1) non-flow-through common share of Pele at $0.07 until December 24, 2017.
Certain directors (the "Purchasing Directors"), purchased an aggregate of $37,851.45 of the securities issued pursuant to the Offering and declared a conflict and recused themselves from voting on the Offering. There was no materially contrary view or abstention by any director approving the Offering. Pursuant to Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"), the purchase by the Purchasing Directors was a "related party transaction" but the Corporation was exempt from the requirements to obtain a formal valuation or minority shareholder approval in connection with the Offering.
All proceeds raised from the sale of Units will be used by Pele to finance qualified Canadian exploration expenditures on its Canadian resource properties. The securities issued pursuant to the Offering will all be subject to a four (4) month statutory hold period commencing from the date of issuance. The Offering is subject to TSX Venture Exchange acceptance of requisite regulatory filings.