Business
Spanish Mountain Gold Announces Closing of C$5 Million Private Placement with Eric Sprott
Vancouver, British Columbia--(Newsfile Corp. - July 27, 2020) - Spanish Mountain Gold Ltd. (TSXV: SPA) ("Spanish Mountain" or the "Company") is pleased to annou
About this update from Spanish Mountain Gold Ltd.
[{"type":"text","content":" Vancouver, British Columbia--(Newsfile Corp. - July 27, 2020) - Spanish Mountain Gold Ltd. (TSXV: SPA) (\"Spanish Mountain\" or the \"Company\") is pleased to announce that it has closed a non-brokered private placement offering (the \"Offering\") of 16,666,666 common share units (the \"Units\") for gross proceeds of $5,000,000, entirely subscribed by Mr. Eric Sprott. Each Unit consisted of one common share of the Company and one common share purchase warrant (a \"Warrant\"). Each Warrant entitles its holder to purchase one common share at a price of $0.45 per share for a period of two years. All of the securities issued in connection with the Offering are subject to a statutory four-month hold period expiring on November 24, 2020. Larry Yau, CEO, commented: \"I would like to personally thank Eric for another vote of confidence in Spanish Mountain. With his impressive track record of picking outperformers among mining explorers and developers, we are honoured and delighted to be his choice of personal investment twice within a short period of two weeks.\" No finders' fees, warrants or commissions were paid in connection with the Offering. The Company expects to use all of the proceeds of the Offering to advance the Company's Spanish Mountain gold project to achieve other key project milestones beyond the preliminary feasibility study. Details of the project work will be announced shortly. The Offering is subject to final acceptance by the TSX Venture Exchange upon filing of final documentation. Mr. Sprott through 2176423 Ontario Ltd., a corporation that is beneficially owned by him, acquired 16,666,666 Units pursuant to the Offering for a total consideration of $5,000,000. His participation is considered to be a \"related party transaction\" as defined under Multilateral Instrument 61-101 (\"MI 61-101\"). The transaction was 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 exceeded 25% of the Company's market capitalization. Subsequent to the Offering, Mr. Sprott beneficially owns or controls 36,666,666 common shares of the Company and 36,666,666 Warrants representing approximately 12.2% of the issued and outstanding shares of the Company on a non-diluted basis and approximately 21....