Vancouver-based Tarsis Resources (CVE:TCC) late yesterday said that the financing it announced last month was oversubscribed, and has therefore increased the offering by more than double to $1.03 million.
The company said the new offering, an increase from $0.5 million, was fully subscribed.
The financing will now consist of a total of 6.87 million units at 15 cents each, with every unit made up of one common share and one share purchase warrant.
Each warrant allows the holder to buy one additional share for a 3 year period, at a price of 25 cents each.
“We were very pleased that three strategic shareholders decided to increase their positions significantly and this has oversubscribed the financing,” said president Marc Blythe.
Tarsis said the new funds will be used for its prospect generation efforts in the Yukon, Canada, in Mexico, and in the US, as well as for some early-stage exploration work to upgrade its existing projects, and for general corporate purposes.
In addition to the three strategic shareholders that Blythe said decided to increase their positions significantly, Almaden Mineralsalso continues to hold 4.1 million shares of Tarsis – representing a 10.5 per cent stake.
The company’s management also participated in the offering, and will own roughly 11 per cent of the 39.14 million Tarsis shares issued and outstanding once the deal is closed.
The financing, which is expected to close shortly, still needs the approval of the TSX Venture Exchange.
Tarsis has nine mineral properties in the Yukon, and one in Mexico. It acquires prospective exploration projects when metal prices are low or of strategic value, and vends or options out projects to partners for advancement.
Last month, Tarsis Resources unveiled final results from diamond drilling at its White River property in the southwestern Yukon, from project optionee Driven Capital Corp (CVE:DVV).
Driven funded the 2012 exploration program as part of its deal to earn a 60 per cent interest in the project. The program represented the first ever drill campaign conducted at White River, Tarsis said.
Moderately elevated gold values were identified in all holes, the company noted, with assays ranging from 0.42 to 2.78 grams per tonne (g/t) gold over intervals ranging from 0.76 to 1.47 metres.
In total, 1,327 metres were drilled in seven holes during the season, with all holes targeting gold-copper-silver mineralization in portions of the HG, Cool and MB zones.
Results for the first four holes, drilled from two pads testing a 150 metre portion of the HG Zone, were announced in mid-August, with the final three holes announced last month.
To earn a 60 per cent interest in White River, Driven must pay $400,000 in cash to Tarsis, issue 2 million shares and spend $4.25 million in exploration on the project.
Once earn-in obligations are settled, a joint venture will be created, with Tarsis retaining a 2 per cent net smelter royalty on any minerals produced.
