Tearlach, Blackrock Silver active on financing news
Blackrock Silver Corp. [BRC-TSXV] and Tearlach Resources Ltd. [TEA-TSXV, TELHF-OTC, V44 Frankfurt] shares were active Friday after after both companies announced financing news.
Tearlach said it has struck a deal with a syndicate of agents co-led by Sprott Capital Partners LP and Beacon Securities in connection with a private placement financing of 7.5 million units priced at 80 cents each. The financing is expected to generate minimum proceeds of $6 million.
Each unit consists of one common share and one half of one common share purchase warrant. Each warrant entitles the holder to purchase one common share at an exercise price of $1.10 for a period of 24 months after the issue date.
Tearlach said proceeds are earmarked for exploration and development activities.
Meanwhile Blackrock said it has struck a deal with PI Financial and Red Cloud Securities as co-lead agents of a syndicate in connection with a private placement of up to 21.4 million units priced at 37 cents each. The company is aiming to raise $7.9 million, subject to a minimum offering of 10.9 million units that would generate gross proceeds of just over $4 million.
Each unit will consist of one common share and one half of one common share purchase warrant. Each whole warrant entitles the holder to acquire an additional common share for 50 cents for three years from the closing date. Shares of both companies were active on the news.
Blackrock shares eased 14.6% or $0.06 to 35 cents on volume of 1.47 million. The shares trade in a 52-week range of $1.30 and 36.5 cents.
Tearlach shares eased 19.5% or 19 cents to 78 cents on volume of 1.11 million. The shares trade in a 52-week range of $2.55 and 14 cents.
Tearlach has a joint venture deal with Blackrock Silver on the Gabriel project in Tonopah Nevada bordering American Lithium Corp.’s [LI-TSXV, LIACF-OTCQB, 5LA1-Frankfurt] TLC Deposit.
Under an agreement with Blackrock, Tearlach can earn up to a 70% interest in Gabriel by incurring US$20 million of exploration expenses and completing a feasibility study within five years.
In a February 21, 2023 press release, Tearlach said it has launched a Phase 1 core drilling program, consisting of 19 holes (3,000-metres).
The drill program has been designed to confirm lithium mineralization intersected in holes drilled by Blackrock and to complete step out holes for prospective locations throughout the Gabriel property. Material from mineralized intervals will be utilized for initial metallurgical testing.
Blackrock said proceeds from its offering will be used to fund the US$700,000 option payment due on April, 2, 2023 in relation to the Tonopah West project. Proceeds will also be used to fund the US$500,000 lease payment due on October 27, 2023 in relation to its Silver Cloud project in Nevada. Exploration at the company’s portfolio of silver and gold projects will also be funded by he financing proceeds.