The Mining Stock Report

La Quinta Resources Corp., subject to regulatory approval, has arranged for a non-brokered private placement consisting of up three million units at a price of 30 cents per unit to accredited investors.

La Quinta Resources Corp., subject to regulatory approval, has arranged for a non-brokered private placement consisting of up three million units at a price of 30 cents per unit to accredited investors.

Each unit will consist of one common share and one-half of one warrant. Each full warrant will, in turn, entitle the holder to purchase an additional common share in the company at a price of 40 cents in the first year following the issuance of the warrants and 60 cents per share in the second year following the issuance. The warrants are exercisable for a period of 24 months from their date of issuance, subject to certain acceleration clause.

A finder’s fee of up to 8 per cent of the total proceeds may be paid to qualified finders upon issuance. The company will also grant 8-per-cent finders’ warrants to accredited brokers or financial institutions at an exercise price of 45 cents per share, exercisable for up to 12 months from the issuance. The company may close the financing in multiple tranches.

The company will use the funds for exploration expenditures in the Democratic Republic of Congo (DRC), plus general working capital.