The net proceeds from financings will be used by Front Range Resources Ltd. to fund the drilling and completion of a Montney horizontal exploration well and a Montney horizontal development well in the company’s Pepper acreage block in west-central Alberta, Canada.

The horizontal exploration well will be drilled in the fourth quarter of 2016, and the horizontal development well will be drilled in the first quarter of 2017. Front Range has full working interest for both wells.

The company has full interest in the 26-section Pepper acreage block on 16,640 net acres, where both wells are located.

Front Range filed a preliminary short form prospectus regarding a proposed offering of up to CA$18 million common shares priced at 70 cents each, of which CA$7 million may be issued as flow-through shares.

The net proceeds will also support general working capital, Front Range said. The total gross proceeds will be CA$20 million, and they will be used to incur eligible Canadian exploration expenses after the closing date and prior to Dec. 31, 2017.

The financing offering will be led by Sprott Private Wealth LP and include GMP Securities LP as agents. They will receive a cash commission equal to 5% of the gross proceeds that will be raised.

Front Range said that in conjunction with the offering it might issue subscribers including certain directors and shareholders common shares or flow-through shares in a concurrent private placement.

These shares will be subject to a statutory hold period of four months plus one day from the date of completion of the private placement.

All the shares will be distributed through the short-form prospectus in the provinces of British Columbia, Alberta, Saskatchewan and Ontario and in certain other jurisdictions, Front Range said.

The offering and the private placement are expected to close on Sept. 22. Their completions are subject to certain conditions including the receipt of all necessary regulatory approvals including the approval of the TSXV Exchange.