Business
Blue Lagoon Resources Completes $8.13 Million Private Placement Lead by a Strategic Investment by Crescat Capital for $1.5 Million
STRONG MARKET DEMAND LEADS TO 48% OVER SUBSCRIPTION VANCOUVER, BC / ACCESSWIRE / July 15, 2021 / Blue Lagoon Resources Inc. (the "Company") (CSE:BLLG) (FSE:7BL)
About this update from Blue Lagoon Resources Inc
[{"type":"text","content":" STRONG MARKET DEMAND LEADS TO 48% OVER SUBSCRIPTION VANCOUVER, BC / ACCESSWIRE / July 15, 2021 / Blue Lagoon Resources Inc. (the \"Company\") (CSE:BLLG) (FSE:7BL) (OTCQB:BLAGF)is pleased to announce that further to its news release dated July 8, 2021, the Company has closed a non-brokered flow through and non-flow through financing for proceeds of $8,130,908.31. Crescat Capital LLC (\"Crescat\") was the lead order and made a strategic investment of $1.5 Million, representing more than 18% of the total financing. In addition, Crescat requested and secured, participation rights that provide for an option to participate in all future financings. \"We are very pleased with the strong market demand that came from sophisticated investors whose desire to participate in our company lead to a strong closing of this financing which was 48% over subscribed,\" said Rana Vig, President & CEO of Blue Lagoon Resources. \"With this capital raise, an existing healthy treasury, no debt, and nearly $4 million in-the-money warrants, the Company will be very well funded to execute on an aggressive drill program at Dome Mountain this year, one that could result in the recognition of Dome Mountain as a potentially large, high-grade gold system,\" he added. FINANCING DETAILS The private placement (the \"Private Placement\") consisted of 4,761,154 charity flow-through units (\"Charity Units\") at a price of $0. 7425 per Unit, 609,758 regular flow-through units (the \"FT Units\") at a price of $0.82 per unit, and 7,446,818 non-flow-through units (the \"NFT Units\") at a price of $0.55 per unit, for aggregate gross proceeds to the Company of $8,130,908.31. Each of the units is comprised of one common share of the Company and one-half of one common share purchase warrant. Each whole warrant is exercisable into one common share of the Company at an exercise price of $0.75 per share in the case of the Charity Units and the NFT Units, or $1.10 per share in the case of the FT Units, until July 15, 2023. Proceeds from the sale of the Charity Units and FT Units will be used for exploration activities in accordance with flow-through tax rules. Proceeds from the sale of the NFT Units will be used for exploration as well as for general working capital purposes. The Company paid finders' fees in cash in the aggregate amount of $171,863.08, equal to 7% of the gr...