Silver Sands Resources Corp (OTCMKTS:SSRSF) dropped 4% after announcing a private placement of around 2 million Flow-Through Units at CA$0.15 per Flow-Through Unit for total proceeds of $300,000.
Market Reaction
On Friday, SSRSF stock fell 4% to $0.0864 with more than 12K shares, compared to its average volume of 35K shares. The stock moved within a range of $0.0864 – 0.0965 after opening trade at $0.0965.
Silver Sands Announces $300,000 Flow-Through Private Placement Financing
Each unit will comprise one FT common share at $0.15 per share, qualifying as FT shares per subsection 66(15) of the Canadian Income Tax Act and one half of a common share purchase warrant. The warrant entitles warrant holders to acquire a company’s common share that is not a FT share at $0.25 per share for 24 months from the day of issuance.
In compliance with the CSE’s regulations, the company will pay a consulting fee of around 7% warrants and 7% cash (with the same conditions as the subscribers’ options) on all or part of the Private Placement. The proceeds from the tender offer would be used further to develop the firm’s mineral interests in Canada. The CSE’s approval is required for the Private Placement. So SSRSF is worth watching.
Traders Review
SSRSF stock is trading below the 20-Day and 50-Day Moving averages of $0.0877 and $0.0885 respectively. Moreover, the stock is trading below the 200-Day moving average of $0.1161.
