11:28 AM EST, 02/20/2025 (MT Newswires) -- Prairie Provident Resources ( PRPRF ) on Thursday said it closed the first tranche of its equity financing, raising $4.8 million from its principal and largest shareholder, PCEP Canadian Holdco (PCEP).

The first tranche closing is part of the $9.1-million brokered financing announced last week, with the second and final tranche expected to close Feb. 27.

The $9.1 million financings is comprised of $4.1 million of units at $0.0425 each offered under the listed issuer financing exemption, and a private placement of $5 million worth of shares at $0.0425 each. The company issued 113-million shares at $0.0425 each under the private placement component in the first tranche.

PCEP and certain directors and officers of the company are participating in the offerings to raise $7.35 million. The first tranche represents $4.8 million of this participation, with the remaining $2.55 million in lead orders provided for through director commitments and Prairie's subscription agreement with PCEP.

Proceeds will be used to drill two additional Basal Quartz horizontal wells in the first quarter of this year.

The company's shares were last seen up $0.005 to $0.045 on the Toronto Stock Exchange.