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Spruce Ridge Resources Announces Non-Brokered Flow-Through Private Placement of up to $1,400,000 and First Tranche Closing
PUSLINCH, ON / ACCESSWIRE / January 11, 2021 / Spruce Ridge Resources Ltd. (TSXV: SHL) ("Spru...
About this update from Homeland Nickel Inc
[{"type":"text","content":"Spruce Ridge Resources Announces Non-Brokered Flow-Through Private Placement of up to $1,400,000 and First Tranche ClosingPUSLINCH, ON / ACCESSWIRE / January 11, 2021 / Spruce Ridge Resources Ltd. (TSXV: SHL) (\"Spruce Ridge\" or the \"Company\") announces that the Company intends to complete a non-brokered private placement of flow-through shares (the \"Private Placement\"). The flow-through shares are priced at $0.14 per flow-through share for gross proceeds of up to $1,400,000 (the \"Offering\").The Company also announces the first tranche closing of $610,000 and issuing 4,357,142 flow through shares. In connection with the first tranche private placement, the Company will pay $39,760 in finders' fees and will issue 263,000 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 TransactionIn 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 no...