Vancouver, British Columbia--(Newsfile Corp. - April 13, 2017) - Firesteel Resources (TSXV: FTR) has announced a non-brokered private placement. The company plans to raise up to $2 million through the offering of up to 20 million units at $0.10 per unit.
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Each unit consists of 1 share and one-half a warrant, with each full warrant exercisable at $0.20 for 24 months. The shares are currently trading at $0.09, and with 72.2 million shares outstanding, the company is capitalized at $6.5 million.
The company intends to use the net proceeds to exercise the first option to acquire an initial 10% equity interest in Nordic Mines Marknad at a cost of 1 million Euros, and for working capital. Firesteel recently announced an option to acquire up to 100% of Nordic Mines Marknad, which owns 100% of the fully permitted Laiva Mine in Finland. Following this investment, Firesteel will obtain an option to invest a further CD$20 million to acquire a further 50%. The final 40% could then be acquired at a fair market value with 12 months of completing the earn in.
The company plans to upgrade a historic non-compliant resource estimate on the project, one of the largest gold projects in Finland.
Michael Hepworth, President and CEO of Firesteel stated: "Over the last 12 months we have examined many opportunities; however, this one checked all the boxes as it provides a short term opportunity for Firesteel to acquire a past producer, conduct the appropriate engineering studies and return it to production in a releatively short period. More importantly Finland is a safe mining jurisdiction and work can be conducted year round. There is good exploration potential within the mine property and the region in general. Since Nordic Mines OY has been in administration, Legacy Hill Resources in London have been managing the project and have done a great deal of work to advance the project to a point where a deal of this nature could be achieved. Firesteel will continue working with them as we move the project forward."
For more information, or to get a copy of the subscription agreement, please visit the company's website, www.firesteelresources.com, contact Michael Hepworth, President and CEO, at 416-419-5192 or email mhepworth@firesteelresources.com.
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