Business
Spanish Mountain Announces $5M Private Placement
Vancouver, British Columbia--(Newsfile Corp. - July 20, 2020) - Spanish Mountain Gold Ltd. (...
About this update from Spanish Mountain Gold Ltd.
[{"type":"text","content":"Spanish Mountain Announces $5M Private PlacementVancouver, British Columbia--(Newsfile Corp. - July 20, 2020) - Spanish Mountain Gold Ltd. (TSXV: SPA) (the \"Company\") is pleased to announce that the Company has arranged a private placement of units at $0.30 per unit (a \"Units\") for gross proceeds of $5,000,000 (the \"Offering\"), subscribed by Mr. Eric Sprott.Each Unit will consist of one common share of the Company and one common share purchase warrant (a \"Warrant\"). Each Warrant will entitle the holder to purchase one common share at a price of $0.45 per share for a period of two years. The proceeds of the private placement will be used to advance the Company's Spanish Mountain gold project beyond the preliminary feasibility study, which is expected to be completed within 12 months as disclosed in a news release dated July 13, 2020.Closing of the Offering, which is expected to occur on or about July 27, 2020, is subject to customary conditions, including the acceptance of the TSX Venture Exchange. All securities issued in connection with the private placement will be subject to a four month hold period in Canada.Mr. Sprott's investment is considered to be a \"related party transaction\" as defined under Multilateral Instrument 61‐101 (\"MI 61‐101\"). The transaction will be exempt from the formal valuation and minority shareholder approval requirements of MI 61‐101 as neither the fair market value of any securities issued to nor the consideration paid by such persons will exceed 25% of the Company's market capitalization.This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the \"U.S. Securities Act\") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.About Spanish Mountain Gold Ltd.Spanish Mountain Gold Ltd. is focused on advancing its multi-million ounce Spanish Mountain gold project in southern central British Columbia. The Company has prioritized the development of the first phase of the Project in which the pit-d...