Avalon Investment Holdings Announces Closing of First Tranche of Private Placement Aggregate Gross Proceeds of US$3,314,857

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[{"type":"text","content":"Avalon Investment Holdings Announces Closing of First Tranche of Private Placement Aggregate Gross Proceeds of US$3,314,857Toronto, Ontario--(Newsfile Corp. - January 14, 2020) - Avalon Investment Holdings Ltd (\"Avalon\") the holder of 100% interest in the Omai Gold Mine in Guyana, through a wholly owned subsidiary, is pleased to announce that it has raised gross proceeds of US$3,314,857 as the first tranche of its US$4,400,000 non-brokered private placement previously announced on October 10, 2019 (the \"Offering\").Avalon issued 15,000,000 common shares (each, a \"Common Share\") to Sandstorm Gold Ltd (NYSE: SAND) (TSX: SSL) (\"Sandstorm\") for consideration of US$1,500,000 and a 1% royalty (described below). The subscription for Common Shares by Sandstorm is the first tranche of a US$2,000,000 order from Sandstorm. Sandstorm intends to purchase an additional US$500,000 of Common Shares part of the upcoming closing of the 2nd tranche of the Offering upon satisfaction of certain conditions precedent, including the raising of US$2,400,000 in gross proceeds under the Offering (excluding Sandstorm's subscription). Under the Offering, Sandstorm was granted a 1% royalty on the Omai Gold Mine. Avalon retains the right to purchase 0.5% of the royalty from Sandstorm for US$4,000,000 for a period of 30 months. In addition, pursuant to the Offering, Avalon sold 18,148,570 units (each, a \"Unit\") for total consideration of $1,814,857, each Unit consisting of one Common Share and one-half of one whole common share purchase warrant (each whole warrant, a \"Warrant\"). Each Warrant will entitle the holder, on exercise, to purchase one additional Common Share for a period of 24 months at a price of US$0.35. As part of the Offering, GoldSpot Discoveries Corp. (TSXV: SPOT) (\"GoldSpot\") has acquired 4,000,000 Units for proceeds of US$400,000. In a statement Denis Laviolette, President and CEO of GoldSpot stated, \"GoldSpot is delighted to participate in the Avalon financing and provide our extensive exploration experience and artificial intelligence technology in assisting Avalon in advancing the potential of the Omai Gold Mine in Guyana.\"Avalon may increase the US$4,400,000 offering to accommodate additional demand. The revised maximum, if any, will be announced on closing of additional tranches.As previously disclosed, Avalon has executed...

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