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Spruce Ridge Resources Announces Closing of Non-Brokered Flow-Through Financing
PUSLINCH, ON / ACCESSWIRE / January 20, 2021 / Spruce Ridge Resources Ltd. (TSXV:SHL) ("Spruce Ridge" or the "Company") is pleased to announce that it has close
About this update from Homeland Nickel Inc
[{"type":"text","content":" PUSLINCH, ON / ACCESSWIRE / January 20, 2021 / Spruce Ridge Resources Ltd. (TSXV:SHL) (\"Spruce Ridge\" or the \"Company\") is pleased to announce that it has closed the final tranche of its previously announced non-brokered private placement of flow-through shares (see News Release dated January 11, 2021) for gross proceeds of $1,006,640 consisting of 7,189,000 Flow-Through shares at a price of $0.14 per share. The total amount raised was $1,616,640. In connection with the final tranche private placement, the Company will pay $48,612 in finders fees and will issue 286,960 broker warrants exercisable at $0.14 for 24 months from the date of issue, as permitted by the policies of the TSX Venture Exchange. All securities issued pursuant to the private placement will be subject to a four-month hold period. The flow-through shares will entitle the holder to receive the tax benefits applicable to flow-through shares, in accordance with provisions of the Income Tax Act (Canada). The proceeds of this financing will be used to further advance the Company's Great Burnt Copper Gold Property in Central Newfoundland. Funds will be used to make an access trail from Great Burnt to the South Pond \"A\" Zone with an Indicated Mineral Resource of 219,000 tonnes grading 1.26% Cu and 1.01 g/t Au, plus an Inferred Mineral Resource of 203,000 tonnes of 1.09% Cu and 0.98 g/t Au. The access trail will also allow us to test the 1,100-metre long South Pond \"B\" zone which comprises only gold mineralization with drill intercepts of up to 4.75 g/t Au over 4.33 metres (true width 3.0 metres) and 1.16 g/t Au over 28 metres (true width approximately 25 metres). Both zones are open at depth. Related Party Transaction In connection with the Offering, a director of the Company (the \"Insider\") acquired 150,000 flow-through shares. The participation of the Insider in the Offering constitutes a \"related party transaction\", as such terms are defined by Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions (\"MI 61-101\"). The Company is relying on an exemption from the formal valuation requirements of MI 61-101 available on the basis of the securities of the Company not being listed on specified markets, including the Toronto Stock Exchange, the New York Stock Exchange, the American Stock Exchange, the NASDAQ or certa...