Business
Minaurum Closes $5,000,000 Brokered Private Placement
Vancouver, British Columbia--(Newsfile Corp. - May 28, 2020) - Minaurum Gold Inc. (TSXV: MGG)...
About this update from Minaurum Silver Inc.
[{"type":"text","content":"Minaurum Closes $5,000,000 Brokered Private PlacementVancouver, British Columbia--(Newsfile Corp. - May 28, 2020) - Minaurum Gold Inc. (TSXV: MGG) (\"Minaurum\" or the \"Company\") is pleased to announce the closing of its previously announced brokered private placement offering (the \"Offering\") of units of the Company (the \"Units\") at a price of $0.40 per Unit. A syndicate of agents led by Clarus Securities Inc., together with Agentis Capital Markets Canada Ltd. and Eight Capital (collectively, the \"Agents\"), sold 12,500,000 Units in connection with the Offering for aggregate gross proceeds of $5,000,000.Each Unit consists of one common share of the Company (each, a \"Common Share\") and one-half of one Common Share purchase warrant (each whole warrant, a \"Warrant\"). Each Warrant is exercisable to acquire an additional Common Share at an exercise price of $0.60 for a period of 24 months following the closing of the Offering, subject to adjustment in certain circumstances. The Warrants are issued pursuant to a warrant indenture dated May 28, 2020 between the Company and TSX Trust Company, as warrant agent.As consideration for their services in connection with the Offering, the Agents received a cash commission in the amount of $254,700 and an aggregate of 636,750 broker warrants (the \"Broker Warrants\"). Each Broker Warrant is exercisable to acquire one Unit at an exercise price of $0.40 for a period of 24 months following the closing of the Offering, subject to adjustment in certain circumstances.The Company intends to use the net proceeds of the Offering for the further exploration and development of the Alamos Silver Project and for working capital purposes. All securities issued and issuable under the Offering are subject to a four-month hold period from the date of closing of the Offering, in addition to any other restrictions under applicable law.Darrell Rader, President, CEO and a director of the Company, purchased 25,000 Units under the Offering. Mr. Rader's participation is considered to be a \"related party transaction\" as defined under Multilateral Instrument 61-101 (\"MI 61-101\"). The transaction is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as neither the fair market value of the securities to be distributed in the Offering nor the consideration to be rece...