Goldcana Resources Inc. has set the formal structure for its non-brokered private placement, aiming to raise between $1 million and $2 million in gross proceeds, with an over-subscription option that could push total funding to $2.5 million.

The financing will issue units priced at $0.25 each, consisting of one common share and one-half of a common share purchase warrant. Each whole warrant allows the holder to buy an additional share at $0.50 for 24 months following closing. Goldcana has included an accelerated expiry clause: if the company's shares trade on the Canadian Securities Exchange at $1.00 or higher for five consecutive trading days after the statutory hold period expires, the warrants can be forced to expire on 15 days' notice.

The company holds an option to acquire up to a 100% interest in the district-scale La Sarre Gold Project in Québec's Abitibi Greenstone Belt. That property package covers approximately 48,615 hectares across 866 exclusive exploration rights. Securing the project requires Goldcana to complete total cash payments of $2,725,000, issue 10 million post-subdivision common shares, and fund minimum exploration expenditures of $1 million in each of the first two years.

Gross proceeds from the current financing will be split across several areas. Depending on final subscription levels, Goldcana intends to allocate between $600,000 and $1,230,000 directly toward exploration and advancement at La Sarre. Finder's fees will consume up to $140,000, offering costs are pegged at $40,000, and general working capital will receive between $290,000 and $590,000.

Finders may also receive non-transferable broker warrants equal to 7% of introduced units, capped at 535,000 broker warrants in total. These broker warrants carry the same exercise price of $0.50 over a 24-month window.

All securities issued under the offering are subject to a four-month and one-day hold period under Canadian securities laws. The financing remains conditional on receiving final regulatory approvals and acceptance from the Canadian Securities Exchange. Goldcana confirmed that the private placement is not tied to the completion of its option agreement for La Sarre, and no portion of the financing proceeds has been earmarked to satisfy the option's acquisition terms.

Read the full announcement: Goldcana Resources Inc. Announces Terms of Non-Brokered Private Placement