Business
Spanish Mountain Gold Announces Closing of Private Placement
Vancouver, British Columbia--(Newsfile Corp. - August 6, 2020) -  Spanish Mountain Gold ...
About this update from Spanish Mountain Gold Ltd.
[{"type":"text","content":"Spanish Mountain Gold Announces Closing of Private PlacementVancouver, British Columbia--(Newsfile Corp. - August 6, 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 11,904,761 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 $0.60 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 December 5, 2020.Larry Yau, CEO, commented: \"I would like to thank Eric for choosing to subscribe our entire offering once again. His rapid succession of investments in Spanish Mountain over the last few weeks clearly reflects his conviction in the potential of our Project as well as management's ability to deliver for our shareholders.\" 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 significantly expand its multimillion ounce gold resource. 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 11,904,761 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 48,571,427 common shares of the Company and 48,571,427 Warrants representing approximately 15.5% of the issued and outstanding shares of the Company on a non-diluted basis and approximately 26.9% of the issued an...