Business
Spanish Mountain Gold Announces Closing of the First Tranche of Private Placement
Vancouver, British Columbia--(Newsfile Corp. - May 31, 2024) - Spanish Mountain Gold Ltd. ( TSXV:...
About this update from Spanish Mountain Gold Ltd.
[{"type":"text","content":"Spanish Mountain Gold Announces Closing of the First Tranche of Private PlacementVancouver, British Columbia--(Newsfile Corp. - May 31, 2024) - Spanish Mountain Gold Ltd. (TSXV: SPA) (FSE: S3Y) (the \"Company\" or \"Spanish Mountain Gold\") is pleased to announce that, further to its news release dated May 27, 2024, it has closed the first tranche of the previously announced private placement (the \"Private Placement\") of flow-through units of the Company (the \"FT Units\") at a price of $0.24 per FT Unit and non flow-through units (the \"NFT Units\") at a price of $0.21 per NFT Unit. Each FT Unit consists of one common share in the capital of the Company (a \"Common Share\") designated as a flow-through share pursuant to the Income Tax Act (Canada) (a \"FT Share\") and one-half of one Common Share purchase warrant (each whole warrant, a \"Warrant\"). Each NFT Unit consists of one Common Share and one Warrant. Each Warrant entitles the holder thereof to purchase one additional Share (a \"Warrant Share\") at a price of $0.25 per Warrant Share for a period of 24 months from the date of issuance, subject to earlier expiry if the 10-day volume weighted average price of the Common Shares on the TSX Venture Exchange (the \"TSXV\") exceeds $0.30 per Common Share.The first tranche closing of the Private Placement consisted of 7,808,333 FT Units and 6,914,285 NFT Units for total aggregate gross proceeds of $3,325,999.77. All securities issued in connection with the first tranche of the Private Placement are subject to a statutory hold period in accordance with applicable securities legislation. The Company will use the proceeds from the sale of the FT Units for exploration and development work at the Company's Spanish Mountain Gold project in the Cariboo Gold Corridor in British Columbia, and from the sale of the NFT Units for general working capital purposes.In connection with the first tranche closing of the Private Placement, the Company paid aggregate finders' fees of $110,040 and issued an aggregate of 50,000 compensation warrants (each, a \"Compensation Warrant\"), pursuant to finder's fee agreements entered into between the Company and arm's length finders. Each Compensation Warrant entitles the holder thereof to purchase one Warrant Share at a price of $0.25 per Warrant Share until May 30, 2026. Certain insiders of the Company s...