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Santacruz Anounces Closing of First Tranche of Previously Announced Private Placement with a Lead Order from Palisades Goldcorp and Upsizing to CDN$10.0 Million
Vancouver, British Columbia--(Newsfile Corp. - October 7, 2020) - Santacruz Silver Mining Ltd...
About this update from Santacruz Silver Mining Ltd.
[{"type":"text","content":"Santacruz Anounces Closing of First Tranche of Previously Announced Private Placement with a Lead Order from Palisades Goldcorp and Upsizing to CDN$10.0 MillionVancouver, British Columbia--(Newsfile Corp. - October 7, 2020) - Santacruz Silver Mining Ltd. (TSXV: SCZ) (the \"Company\" or \"Santacruz\") is pleased to announce that it has closed the first tranche of its previously announced non-brokered private placement offering (the \"Private Placement\") of units of the Company (each, a \"Unit\") with a lead order from Palisades Goldcorp Ltd. The Company issued an aggregate of 34,678,541 Units at a price of $0.22 per Unit for gross proceeds of $7,629,279.02.Each Unit consists of one common share of the Company and one non-transferable common share purchase warrant (a \"Warrant\"). Each Warrant entitles the holder to acquire one common share of the Company at a price of C$0.30 per share for a period of 36 months following the issue of the Warrant. In consideration for their services, the Company has paid to certain finders cash finders' fees totaling $399,808.74 and issued 999,130 broker warrants having the same terms as the Warrants. Subject to TSX Venture Exchange approval, one finder will receive 204,000 finder units in lieu of the cash and broker warrant fees. Each finder unit will bear the same terms as the Units.The proceeds from the Private Placement are expected to be used by the Company to purchase underground equipment for its Zimapan property and for general working capital and corporate purposes. The securities issued under the first tranche of the Private Placement are subject to a four month hold period expiring on February 8, 2021 in addition to such other restrictions as may apply under applicable securities laws of jurisdictions outside of Canada.Upsize of Private PlacementThe Company is also pleased to announce that due to strong investor demand it has further increased the size of the Private Placement to up to 45,454,545 Units for aggregate gross proceeds of up to CDN$10.0 million, leaving up to an additional 10,776,004 Units that may be issued in one or more tranches. Closing of the remaining tranche(s) of the Private Placement is anticipated to occur on or before October 14, 2020 and is subject to the receipt of applicable regulatory approvals including approval of the TSX Venture Exchange.The Company may pay...