RAPAPORT... True North Gems Inc. raised $725,400 in an initial closing of its non-brokered private placement that was announced on July 31. The funds were raised through issuing 14,508,000 units at a price of 5 cents each, whereas each unit is comprised of one common share and one-half non-transferable common share purchase warrant. Each warrant is exercisable for one additional common share for a period of one year at a price of 12 cents per share.
The company expects to use the proceeds to further the exploitation permitting process with Greenland's government, for seasonal exploration work and for general working capital and other corporate purposes.
A total of five directors and officers of the company acquired 964,000 units in the first tranche of the private placement.
True North Gems explores Greenland and North America for colored gemstone prospects and currently has full interest rights in the Aappaluttoq ruby and pink sapphire project in Greenland, the Tsa da Glisza emerald property in the Yukon, and the Beluga sapphire property located on Baffin Island, Nunavut. While the Aappaluttoq project is the company's primary focus, mineral resource estimates and the economic evaluation process have not been completed.