Elton Resources announces private placement for up to C$5 million

VANCOUVER - Elton Resources Corp. (TSXV:DBAY) has announced a non-brokered private placement offering of up to 22.7 million flow-through units valued at C$0.22 each, with the potential to generate approximately C$5 million in gross proceeds, according to a press release. Each unit includes one flow-through common share and half a flow-through common share purchase warrant, exercisable for three years at an exercise price of C$0.30 per share.

The funds raised will be utilized for Canadian exploration expenses that qualify as flow-through critical mineral mining expenditures under the Income Tax Act (Canada), with the qualifying expenditures to be incurred by December 31, 2027 and renounced to initial purchasers by December 31, 2026. The securities issued are subject to a four-month and one-day hold period, and the company may pay up to 6% in cash and non-transferable warrants as finder's fees.

The offering is subject to approval by the TSX Venture Exchange, with no specific closing date provided. Elton Resources, previously known as Chicane Capital I Corp., is a mining exploration company concentrating on the Darnley Bay project in Northwest Territories, Canada.