Business
Spanish Mountain Announces Brokered Private Placement of up to $3,000,000
/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES / ...
About this update from Spanish Mountain Gold Ltd.
[{"type":"text","content":"\n\n\n/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN THE\n UNITED STATES/\n\n\nVANCOUVER, Sept. 5, 2013 /CNW/ - Spanish Mountain Gold Ltd. (\"Spanish Mountain\" or the \"Company\") (TSX-V: SPA) is pleased to announce that it has engaged Secutor\n Capital Management Corporation to act as lead agent (the \"Agent\") on a commercially reasonable basis for a proposed private placement\n (the \"Offering\") to raise up to $3,000,000 through the issuance of up to $1,500,000 of\n common share units (the \"Units\") and of up to $1,500,000 of flow-through units (the \"FT Units\").\n\n\nEach Unit will be sold at a price of $0.10 per Unit and will consist of\n one common share of the Company and one common share purchase warrant\n (a \"Warrant\"). Each FT Unit will be sold at a price of $0.12 per FT Unit and will\n consist of one common share of the Company which will be designated as\n a flow-through share (the \"FT Shares\") for the purposes of the Income Tax Act (Canada) (the \"Tax Act\") and one-half of a Warrant. Each full Warrant will entitle its holder to\n purchase one common share at a price of $0.15 per share for a period of\n two years following the closing of the Offering. The Company has also\n granted the Agent an over-allotment option, exercisable at any time\n prior to the closing of the Offering, to purchase an additional 15% of\n the total number of Units and FT Units sold pursuant to the Offering.\n\n\nThe Agent will be paid an aggregate cash commission equal to 7% of the\n gross proceeds received by the Company from purchasers of the Units and\n FT Units and issued non-transferable warrants (the \"Broker Warrants\") up to an amount equal to 5% of the total number of FT Units and Units\n sold under the Offering. Each Broker Warrant will entitle the Agent to\n purchase one common share of the Company at a price of $0.10 for a\n period of two years following the closing.\n\n\nThe Offering is available to accredited investors only, and all\n securities issued in connection with the Offering will be subject to a\n four month hold period in Canada. Closing of the Offering, which is\n expected to occur on or about September 18, 2013, is subject to\n customary conditions, including the acceptance of the TSX Venture\n Exchange and the negotiation and execution of an agency agreement\n between the Agent and Spa...