Business
Granada Closes 1st Tranche Financing
ROUYN NORANDA, QC, May 8, 2020 /CNW/ - Granada Gold Mine Inc. (TSXV: GGM) (the "Company" or "Granada") is pleased to announce that the Company has closed the fi
About this update from Granada Gold Mine Inc.
[{"type":"text","content":" ROUYN NORANDA, QC, May 8, 2020 /CNW/ - Granada Gold Mine Inc. (TSXV: GGM) (the \"Company\" or \"Granada\") is pleased to announce that the Company has closed the first tranche of its non-brokered private placement financing raising gross proceeds of $818,000. A total of 8,180,000 units were issued at $0.10 per unit. Each unit consists of one common share in the capital of the Company and one share purchase warrant. Each warrant entitles the holder to purchase one share of the Company for a period of two years from closing at an exercise price of $0.12 cents per share. Certain directors and officers (the \"Insiders\") participated in the first tranche closing and purchased an aggregate of 825,000 units for aggregate gross proceeds of $82,500. Participation by Insiders of the Company in the private placement is considered a \"related party transaction\" pursuant to Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions (\"MI 61-101\"). The Company is exempt from the requirements to obtain a formal valuation and minority shareholder approval in connection with the Insiders' participation in the financing in reliance of sections 5.5(a) and 5.7(a) of MI 61-101, respectively, on the basis that participation in the private placement by the Insiders did not exceed 25% of the fair market value of the Company's market capitalization. All securities issued are subject to a four-month-and-a-day hold period expiring on September 9, 2020, in accordance with applicable securities laws. The private placement is subject to final Exchange approval. The proceeds of the private placement will be used for surface exploration, trenching, and historical resampling of drill core on the Company's Granada Gold Property in Québec and for general working capital purposes. About Granada Gold Mine Inc. Granada Gold Mine Inc. continues to develop the Granada Gold Property near Rouyn-Noranda, Quebec. Approximately 120,000 meters of drilling has been completed to date on the property, focused mainly on the extended LONG Bars zone which trends 2 kilometers east-west over a potential 5.5 kilometers of mineralized structure. The highly prolific Cadillac Break, the source of more than 75 million plus ounces of gold production in the past century, cuts through the north part of the Granada p...