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RAPAPORT... True North Gems Inc. closed the first tranche of its private placement with Lenomi Holdings Ltd. on April 5 with gross proceeds of $500,000 and this week the junior ruby explorer intends to close a second tranche for proceeds of $4.3 million. Once the second tranche is closed, Lenomi will hold a 19.9 percent stake in True North Gems' issued and outstanding shares. A third tranche, under which True North proposes to issue 121,742,496 shares to Lenomi for 9 cents each for gross proceeds of $10,956,825, will result in Lenomi holding approximately 45 percent of True North's issued and outstanding shares. Completion of the third tranche is subject regulatory and shareholder approval. True North's shareholders will vote on the third tranche at the company's annual general meeting of shareholders on June 13. Provided that shareholder approval is obtained, closing of the third tranche is expected to take place on or before July 15 and no later than August 1. The explorer intends to use the private placement proceeds to advance its Aappaluttoq ruby project on Greenland.
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