Jourdan Resources Inc. [JOR-TSXV, JORF-OTCQB-2JR1-FRA], a company that is aiming to become the next lithium producer in Quebec, said it is increasing the size of a recently announced private placement financing, which is now expected to generate proceeds of $2.4 million.
In a press release on June 29, 2022, the company said it planned to complete a non-brokered private placement financing of up to 12.5 million units priced at $0.08 per unit, generating gross proceeds of $1 million. It said it planned to raise an additional $1 million from the sale of 10 million common shares to be issued on a flow-through basis, priced at 10 cents per share.
Each unit consists of one common share and one common share purchase warrant. Each warrant entitles the holder to acquire one additional share at an exercise price of 10 cents for 24 months from the date of issuance.
However, in a subsequent release issued after the close of trading on July 21, 2022, the company said that due to strong investor demand it will issue 14 million flow-through shares at 10 cents, raising the total proceeds to $2.4 million.
Jourdan shares were unchanged at $0.08 and currently trade in a 52-week range of $0.095 and $0.03.
The company’s properties are located in Quebec, primarily in the spodumene-bearing pegmatites of the La Corne Batholith, around North American Lithium’s producing Quebec Lithium Mine. North American Lithiium is a joint investment between Jien International Investments Ltd., and Investissement Quebec.
Jourdan recently published the first assays results of its winter 2022 drilling campaign at its Vallee Project, which is located north of Val d’Or, Quebec. Results are from a 3,629-metre program completed in May, 2022.
The program was intended to follow up on the results of a bulk sample collected in 2018 and the fence line drilled in 2011 and 2021 along the western side of the Vallee property, which borders the North American Lithium mine.
The company said all 18 holes of its 2022 winter drilling campaign have intersected the new spodumene-bearing pegmatite swarm on its Vallee property at a previously underexplored eastern extension, which had not been exposed by the North American Lithium mine to the west of Vallee.
Since restarting drilling in September, 2021, Jourdan has drilled 26 holes, all of which intercepted multiple spodumene-bearing pegmatite dykes.
“We are very excited that the drill program continues to find new spodumene-bearing intersections in new zones,’’ said Jourdan CEO Rene Bharti. “The success of the drill program, coupled with the work underway to build our initial resource estimate in the coming months, is anticipated to bring us one step closer to achieving our goal of becoming Quebec’s next lithium producer,” he said.
He said Jourdan is on track to having more than 9,400 metres (47 holes) of core that the company intends to use in the future to establish an initial mineral resource estimate.