Astra Exploration completes C$15 million private placement

Astra Exploration Inc. (TSXV: ASTR) (OTCQB: ATEPF) completed a private placement of 19,482,000 common shares at C$0.77 per share for gross proceeds of C$15,001,140, according to a company statement.

The offering included the full exercise of underwriters' option and was led by ATB Capital Markets Corp. as lead underwriter and sole bookrunner, together with Stifel Nicolaus Canada Inc. and Velocity Trade Capital Ltd.

The company plans to use net proceeds for exploration and development of the La Manchuria project and for general corporate and 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.

Astra paid underwriters a cash commission equal to 6% of gross proceeds, reduced to 3% for orders on the president's list. The company also paid a 6% finder's fee to an eligible finder for certain subscriptions.

Michael Gentile, an existing shareholder and company insider, participated in the offering and acquired 324,700 shares for C$250,019. This 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 as the transaction 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 projects in Chile.

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