Seasif closes first C$20,000 tranche of private placement

What's the deal? Seasif Exploration has closed the first tranche of a non-brokered private placement, issuing one million common shares at two cents each for gross proceeds of C$20,000 (about $14,108). The company's shares trade on the NEX board of the TSX Venture Exchange under the symbol SAF.H.

Where the money goes: Seasif will use net proceeds to assess and advance potential project opportunities, complete an audit of its financial statements, and cover general and administrative costs.

What's the endgame? Seasif focuses on acquiring and developing precious metals projects in established mining jurisdictions. Through its wholly owned subsidiary, 5530 Nunavut Inc., it holds an interest in the Meadowbank project in Nunavut, Canada.

The fine print: The placement is non-brokered, though Seasif may pay finders' fees to eligible arm's-length parties. All shares carry a statutory hold period of four months and one day from issuance.

What could go wrong? Completion remains subject to conditions, including regulatory and stock exchange approvals. As the company put it, there can be "no assurance that the private placement will be completed as proposed or at all."

The signal: A C$20,000 raise at two cents a share reflects the modest scale of an early-stage explorer working to fund audits and scout opportunities before advancing its assets.

Read more: Stockwatch

Image credit: James St. John