Alpha Exploration closes first tranche of private placement financing

Alpha Exploration closes first tranche of private placement financing

Alpha Exploration Ltd. has closed the first tranche of its previously announced non-brokered private placement of units in the capital of the Corporation (“Units”) at a purchase price of $0.75 per Unit (the “Offering Price”), for total aggregate gross proceeds of $1,401,375.00 (the “Offering”).

The principal use of the proceeds of the Offering will be for funding ongoing exploration work on the Kerkasha Project in Eritrea, operating and administrative expenses, working capital and general corporate purposes.

Each Unit is comprised of one ordinary share in the capital of the Corporation (“Ordinary Share”) and one-half of one Ordinary Share purchase warrant (“Warrant”). Each Warrant entitles the holder to purchase one Ordinary Share for a period of 18 months following the closing date of the Offering at an exercise price of $1.125 (the “Exercise Price”).

Shares and Warrants

In connection with the Offering, Alpha paid certain arm’s length parties a cash finder’s fee payment equal to up to 6.0% of the Units that are sold to subscribers introduced by such parties. In connection with its participation in the Private Placement, the Corporation granted a participation right to Crescat Portfolio Management LLC (“Crescat”), which provided Crescat the right to purchase additional securities of the Corporation in future offerings of securities of the Corporation to maintain its proportional percentage, pursuant to the terms of a participation rights agreement dated March 10, 2022.

The Ordinary Shares and Warrants issued in connection with the Offering and the Ordinary Shares underlying the Warrants are subject to a statutory hold period of four months plus one day from the date of completion of the Offering, in accordance with applicable securities legislation.

The Offering was approved by the Corporation’s board of directors by means of a unanimous resolution. The TSX Venture Exchange provided conditional acceptance of the Offering on April 11, 2022.




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