Goldrea Resources Corp. announced a non-brokered private placement of secured convertible debentures with an aggregate principal amount of up to CAD 100,000 on September 14, 2022. The debentures mature on the second anniversary of their issuance date and will be secured by a general security agreement over the assets of the company.

Interest will accrue on the debentures' outstanding principal at the rate of 12 per cent per annum and will be payable every three months. The holders of the debentures have the right at any time to convert the outstanding debt, in whole or in part, into common shares of the company at three cents per share. In addition, the holders of the debentures will be issued, as a loan bonus, an aggregate of two million common share purchase warrants, each of which entitles the warrant holder to purchase one share at five cents during the two years following the warrant issuance.

All securities issued under the private placement will be subject to a four-month hold. The company will issue 2,000,000 common share purchase warrants, each of which entitles the warrant holder to purchase one share at five cents during the two years following the warrant issuance.