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Discovery Harbour Closes Fully Subscribed Non-Brokered Private Placement of $3,000,000
Vancouver, British Columbia--(Newsfile Corp. - July 20, 2020) - Discovery Harbour Resources Co...
About this update from Discovery Harbour Resources Corp.
[{"type":"text","content":"Discovery Harbour Closes Fully Subscribed Non-Brokered Private Placement of $3,000,000Vancouver, British Columbia--(Newsfile Corp. - July 20, 2020) - Discovery Harbour Resources Corp. (TSXV: DHR) (the \"Company\" or \"Discovery Harbour\") is pleased to announce it has closed its fully subscribed non-brokered private placement for $3 million with a lead order from Palisades Goldcorp Ltd. and a co-lead order by AlphaNorth Asset Management. The company issued 54,545,455 units (each, a \"Unit\") at a price of $0.055 per Unit for gross proceeds of $3,000,000 (the \"Offering\"). Unless otherwise noted, all amounts noted in this news release are in Canadian dollars.Each Unit consists of one common share of the Company (each, a \"Share\") and one common share purchase warrant (each, a \"Warrant\"), with each Warrant entitling the holder to purchase one Share at a price of $0.10 per Share for a period of three years following the closing of the Offering (the \"Closing\").In connection with the Offering the Company paid cash fees of $161,403 and issued 2,934,605 Warrants exercisable at $0.10 for a period of three years from closing to certain finders.Certain insiders of the Company participated in the Offering. The issuance of Units to insiders of the Company pursuant to the Offering is considered a related party transactions within the meaning of TSX Venture Exchange Policy 5.9 and Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions. The Company intends to rely on exemptions from the formal valuation and minority approval requirements of sections 5.5(a) and 5.7(1)(a) of MI 61-101 in respect of such insider participation, based on a determination that fair market value of the participation in the Offering by insiders will not exceed 25 per cent of the market capitalization of the Company, as determined in accordance with MI 61-101. The Units issued on Closing are subject to a four-month hold period under Canadian securities law. Aggregate gross proceeds from the sale under the Offering will be used for (i) a planned drill program on high priority targets on the Company's Caldera epithermal gold project in southern Nevada, (ii) to repay outstanding debt, and (iii) for general working capital purposes.Mark Fields, President & CEO comments \"We are very pleased with the strong response to our...