Business
Outcrop Gold Announces Closing of $5.75 Million Private Placement Financing, Including a Strategic Investment by Eric Sprott
Vancouver, British Columbia--(Newsfile Corp. - June 17, 2020) - Outcrop Gold Corp. (TSXV: OCG) ("Outcrop" or the "Company") is pleased to announce that it has c
About this update from Outcrop Silver & Gold Corporation
[{"type":"text","content":" Vancouver, British Columbia--(Newsfile Corp. - June 17, 2020) - Outcrop Gold Corp. (TSXV: OCG) (\"Outcrop\" or the \"Company\") is pleased to announce that it has closed its previously announced private placement offering of units of the Company (the \"Units\") pursuant to which the Company issued 20,535,715 Units at a price of $0.28 per Unit, for aggregate gross proceeds of approximately $5,750,000 (the \"Offering\"), which included the full exercise of the over-allotment option. The Offering was led by Mackie Research Capital Corporation, as lead agent and bookrunner (the \"Lead Agent\"), along with Eventus Capital Corp. (together with the Lead Agent, the \"Agents\"). Each Unit is comprised of one common share of the Company (a \"Common Share\") and one-half of one Common Share purchase warrant (each whole warrant, a \"Warrant\"). Each Warrant is exercisable to acquire one Common Share (a \"Warrant Share\") at a price of $0.42 per Warrant Share for a period of 24 months from the closing of the Offering. The Company intends to use the net proceeds from the Offering primarily to advance exploration at the Company's Santa Ana project, and for general corporate purposes. Eric Sprott, through 2176423 Ontario Ltd. (\"2176423\"), a corporation which is beneficially owned by him, acquired 9,642,800 of the Units pursuant to the Offering. Prior to the Offering, Mr. Sprott beneficially owned and controlled 10,000,000 Common Shares and 10,000,000 common share purchase warrants of the Company. As a result of the Offering, Mr. Sprott beneficially owns and controls 19,642,800 Common Shares and 14,821,400 common share purchase warrants of the Company, representing approximately 19.2% of the issued and outstanding Common Shares on a non-diluted basis, and 29.4% on a partially diluted basis, assuming the exercise of such common share purchase warrants. Accordingly, Mr. Sprott has undertaken that, unless approval of disinterested shareholders of the Company has been obtained and any other requirements of the TSX Venture Exchange (the \"TSXV\") in such regard have been met, the Warrants acquired by 2176423 will only be exercised to the extent that the Warrant Shares issued upon such exercise would not result in him becoming a \"control person\" (as such term is defined in the policies of the TSXV) of the Company. The Units were acquired by Mr. S...