ALX Resources Corp. Closes Final Tranche of Flow-Through Private Placement
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Vancouver, British Columbia--(Newsfile Corp. - December 29, 2023) - ALX Resources Corp. (TSXV: AL) (FSE: 6LLN) (OTC: ALXEF) ("ALX" or the "Company") announced today the closing of the third and final tranche of a non-brokered private placement consisting of 1,143,286 flow-through units (the "FT Units") of the Company for gross proceeds of $40,015 (the "Third Tranche"). ALX sold 14,086,144 FT Units in three tranches of the private placement for gross proceeds of $493,015.
The FT Units were sold at a price of $0.035 per FT Unit consisting of one flow-through common share and one non flow-through common share purchase warrant. One whole common share purchase warrant from the FT Units entitles the holder to purchase one non flow-through common share of the Company at a price of $0.05 for a period expiring 24 months following closing of the Third Tranche, that expiry date being December 29, 2025.
No finder's fees were payable for the Third Tranche. All securities issued in the Third Tranche will be subject to a resale restriction expiring April 30, 2024, in accordance with applicable securities regulations. The securities described herein have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States unless registered under the Act or unless an exemption from registration is available.
The proceeds from the sale of FT Units will be used solely for exploration programs on the Company's critical minerals properties in Quebec, Saskatchewan, Ontario and Nova Scotia.
One insider of the Company subscribed for a total of 286,000 Units in the Third Tranche of the private placement. Participation by the insider constitutes a related party transaction as defined under Multilateral Instrument 61-101 ("MI 61-101"). The Company is relying on the exemptions from the valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101, as the fair market value of the participation by the insider in the First Tranche of the Offering does not exceed 25% of the market capitalization of the Company, as determined in accordance with MI 61-101.
About ALX
ALX is based in Vancouver, BC, Canada and its common shares are listed on the TSX Venture Exchange under the symbol "AL", on the Frankfurt Stock Exchange under the symbol "6LLN" and in the United States OTC market under the symbol "ALXEF".