Demesne Resources Ltd. Completes Second Tranche of Private Placement Financing

Demesne Resources Ltd. (CSE:DEME) (OTCQB:DEMRF) has announced its successful completion of the second tranche of a non-brokered private placement financing. This financing is part of an offering that Demesne previously announced.

This second tranche involved issuing a total of 3,495,603 common shares at a price of $0.25 each, resulting in gross proceeds of approximately $873,901.

Looking ahead, the company intends to finalize a subsequent tranche of the offering, aiming for gross proceeds of up to $839,599 within December 2024.

Details of the Offering

The company has allocated part of the proceeds from this second tranche to pay finder’s fees, totaling $1,050 in cash. Additionally, 4,200 common share purchase warrants have been issued. Each of these warrants allows the holder to purchase one common share at the same price of $0.25 within a 12-month period.

Completion of the offering is contingent upon receiving necessary corporate and regulatory approvals, including those from the Canadian Securities Exchange (CSE).

Use of Proceeds

The funds raised from this offering will be used to cover certain payments related to an option agreement for the IMA Mine Project, expenses for the Star Project option agreement, ongoing work programs, marketing efforts, and for general working capital needs.

All the securities issued through this second tranche are subject to a statutory hold period of four months and a day from their issuance date, as per applicable securities legislation.

Company Overview

Demesne Resources Ltd. is a British Columbia-based corporation focused on acquiring and exploring magnetite mineral properties. The company’s Star Project consists of five contiguous mineral titles and covers roughly 4,615.75 hectares in the Skeena Mining Division of British Columbia, Canada. Moreover, Demesne has the option to obtain a 100% interest in the IMA Mine Project, which is a previously operational underground tungsten mine located in East Central Idaho, United States.

financing, mining, resources