Business
Signature Resources Announces Closing of a Private Placement
Toronto, Ontario--(Newsfile Corp. - March 8, 2023) - Signature Resources Ltd. (TSXV: SGU) (OTCQB:...
About this update from Signature Resources Ltd.
[{"type":"text","content":"Signature Resources Announces Closing of a Private PlacementToronto, Ontario--(Newsfile Corp. - March 8, 2023) - Signature Resources Ltd. (TSXV: SGU) (OTCQB: SGGTF) (FSE: 3S3) (\"Signature\" or the \"Company\") is pleased to announce that it has closed a non-brokered private placement (the \"Offering\"). Pursuant to the Offering, the Company has issued 20,325,000 common shares (the \"Shares\") for aggregate gross proceeds of C$813,000. Each Share was issued at a price of C$0.04. Insiders of the Company purchased or acquired direction and control over a total of 14,564,950 Shares under the Offering. The placement to those persons constitutes a \"related party transaction\" within the meaning of TSX Venture Exchange Policy 5.9 and Multilateral Instrument 61-101 -Protection of Minority Security Holders in Special Transactions (\"MI 61-101\") adopted in the Policy. Pursuant to Sections 5.5(b) and 5.7(1)(b) of MI 61-101, the Company is exempt from the requirements to obtain a formal valuation and minority shareholder approval, respectively, in connection with the Offering as the common shares are listed on the TSX Venture Exchange, neither the fair market value of the common shares proposed to be purchased by the Participating Directors' in the Offering nor the consideration to be received for such common shares will exceed $2,500,000, and at least two-thirds of the independent directors in respect of the Offering have approved the transaction.All securities issued in the Offering are subject to a statutory hold period ending July 9, 2023, and the Offering is subject to final acceptance of the TSX Venture Exchange.Approximately 21% of the gross proceeds of the Offering will be used to pay amounts currently owing by the Company to non-arm's length parties, approximately 18% of the gross proceeds of the Offering will be used to pay amounts owing to former management of the Company, and the balance of the proceeds will be used to fund, in part, ongoing work in preparation of the initial mineral resource estimate for the Lingman Lake gold property and for general corporate and working capital purposes. It is not expected that any of the proceeds of the Offering will be used for payments to persons conducting investor relations activities.\"This offering is a significant step in resetting Signature's path towards delivering on our goals o...