Published On: Sun, May 4th, 2014

Pele Mountain Resources Inc. (OTCMKTS:GOLDF) Raises $437M Through Private Placement Offering

On 2nd May, Ontario based Pele Mountain Resources Inc. (OTCMKTS:GOLDF) disclosed that it has raised nearly $437 million proceeds from its efforts to privately place its share of common stock and warrants.  The units placed consist of one share of common stock and an additional warrant which guarantees a common share issued by Pele Mountain Resources Inc. (OTCMKTS:GOLDF) for a fixed and discounted price of 12 cents. The option to buy has been fixed till 1st November 2015.

Funds To Be Used To Expand Eco Ridge Mine

The funds would be used by Pele Mountain Resources Inc. (OTCMKTS:GOLDF) to develop its fully owned Eco Ridge Mine project which is located in Ontario and is noteworthy as the only production capable rare earth mining activity pursued in the private sector. In a note to its investors, the company has noted that, “With well-understood geology and mineralogy, excellent regional infrastructure, and strong local support, Eco Ridge is an ideal location for the development of safe, secure, and reliable supply of critical rare earths and uranium”.

Grant Of Stock Options To Director

It is important to note here that Pele Mountain Resources Inc. (OTCMKTS:GOLDF)  has huge claims on the  rare earth containing mining properties that are located in Mountain Pass, in California. The firm had in the second week of April also awarded 250,000 stock options as incentives to the individual director. These stock options are to be vested in the director till the 31st of December and can be exercised at a sale price of 10 cents per share.

It is important to note here that the 10 cents per share price is well above the price that Pele Mountain Resources Inc. (OTCMKTS:GOLDF) was trading at the browsers on the previous day. The placement prospectus underlines that the shares on being issued cannot be exercised in the first 4 months after the issue.

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