Astra Exploration closes C$6.25 million private placement

Astra Exploration Inc. (TSXV: ASTR) (OTCQB: ATEPF) completed a private placement of 10,080,690 common shares at C$0.62 per share for gross proceeds of C$6,250,027.80, according to a company statement.

The offering was led by Cormark Securities Inc. as lead underwriter and sole bookrunner, along with Beacon Securities Limited and Research Capital Corporation. The transaction included partial exercise of the underwriters' option.

The company plans to use net proceeds for exploration expenditures on the La Manchuria project and general working capital purposes. The shares were sold under Part 5A.2 of National Instrument 45-106 and will not be subject to a hold period in Canada.

The underwriters received a cash commission equal to 6% of gross proceeds, reduced to 3% for orders on the president's list. Michael Gentile, an existing shareholder and insider, purchased 282,300 shares for C$175,026 as part of the offering.

Gentile's participation constituted a related party transaction under Multilateral Instrument 61-101, though the company determined it was exempt from formal valuation and minority shareholder approval requirements since the transaction value did not exceed 25% of the company's market capitalization.

The offering remains subject to final approval from the TSX Venture Exchange. Astra Exploration is a Vancouver-based precious metals exploration company with projects in Latin America, including the La Manchuria gold-silver project in Argentina and properties in Chile.

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