Business
Spanish Mountain Gold Announces Closing of Oversubscribed Private Placement
Vancouver, British Columbia--(Newsfile Corp. - July 13, 2020) - Spanish Mountain Gold Ltd. (...
About this update from Spanish Mountain Gold Ltd.
[{"type":"text","content":"Spanish Mountain Gold Announces Closing of Oversubscribed Private PlacementVancouver, British Columbia--(Newsfile Corp. - July 13, 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 40,000,000 common share units (the \"Units\") for gross proceeds of $4,000,000. Management has determined that it is in the best long-term interest of the Company to upsize the Offering in order to accommodate a highly respected mining investor, 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 $0.15 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 13, 2020.Larry Yau, CEO, commented: \"I believe this private placement has fulfilled our goal of placing shares exclusively with long term supporters of our project. The Company would like to welcome the many investors from around the globe including a personal investment by Mr. Sprott as our new shareholders and thank a number of existing shareholders for increasing their investment in our Project. We regret leaving numerous orders for the private placement unfilled as we strongly believe in maintaining discipline in financing.\" 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. 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.An officer of the Company subscribed to a total of 1,150,000 Units in connection with the Offering. Such 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.Mr. Sprott th...