St. James Gold Corp. Announces Closing of $5M Brokered Private Placement Offering

About this update from St. James Gold Corp

[{"type":"text","content":" Vancouver, British Columbia, June 30, 2021 (GLOBE NEWSWIRE) -- St. James Gold Corp. (the “Company”) (TSXV: LORD) (OTCQB: LRDJF) (FSE: BVU3) is pleased to announce the closing today of its previously announced brokered private placement offering (the “Offering”) of 1,241,251 units of the Company (each, a “Unit”) at a price of $3.00 per Unit and 355,465 flow-through units of the Company (each, a “FT Unit”) at a price of $3.60 per FT Unit for aggregate gross proceeds to the Company of $5,003,427. The Offering was led by Canaccord Genuity Corp. as sole lead agent (the “Agent”). Each Unit consists of one common share in the capital of the Company (each, a “Common Share”) and one Common Share purchase warrant (each, a “Warrant”), with each Warrant entitling the holder thereof to purchase one additional Common Share at an exercise price of $3.90 for a period of three (3) years from the closing date of the Offering (the “Closing Date”). Each FT Unit qualified as a “flow-through share” as defined in subsection 66(15) of the Income Tax Act (Canada) (the “Tax Act”) and is comprised of one Common Share and one Warrant, with each Warrant entitling the holder thereof to purchase one additional Common Share (which will not qualify as a “flow-through share”) at an exercise price of $3.90 for a period of three (3) years from the Closing Date. As consideration for its services in connection with the Offering, the Company paid the Agent a cash fee in the amount of $300,206 and issued the Agent an aggregate of 95,803 broker warrants (each a “Broker Warrant”). Each Broker Warrant is exercisable to purchase one Unit for a period of three (3) years from the Closing Date at an exercise price of $3.00. In addition, the Company issued 31,934 Units to the Agent in satisfaction of a corporate finance fee. The Company intends to use the net proceeds of the Offering to satisfy the initial payment on the Florin Gold Project acquisition, conduct drilling on the Florin Gold Project and the Company’s Newfoundland properties and for general corporate purposes. The gross proceeds raised from the sale of FT Units will only be used to incur “Canadian exploration expenses” that are “flow-through mining expenditures” (as such terms are defined in the Tax Act) on the Company’s options on the Florin Gold Project and Newfoundland properties. Pursuant to applicable Canad...

More updates from St. James Gold Corp