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Volcanic Gold Mines Completes $5 million Private Placement
Vancouver, British Columbia - TheNewswire - July 28, 2020 - Volcanic Gold Mines Inc. (TSXV:VG) ("Volcanic" or the "Company") is pleased to announce that is has
About this update from Volcanic Gold Mines Inc.
[{"type":"text","content":"Vancouver, British Columbia - TheNewswire - July 28, 2020 - Volcanic Gold Mines Inc. (TSXV:VG) (\"Volcanic\" or the \"Company\") is pleased to announce that is has closed its previously announced non-brokered private placement (the \"Private Placement\") with the issuance of 20,000,000 units (each, a \"Unit\") at $0.25 per Unit, for aggregate gross proceeds of $5 million (see news releases dated June 4, 2020 and June 25, 2020). Roth Capital Partners acted as financial advisor in the Private Placement. Each Unit consists of one common share in the capital of the Company (each, a \"Common Share\") and one-half of one common share purchase warrant (each whole warrant, a \"Warrant\"). Each Warrant will entitle the holder to purchase one Common Share at a price of $0.30 per Common Share for a period of two years from the issue date. With an investment of approximately $1.42 million in the Private Placement, Silvercorp Metals Inc. has acquired 19.9% of Volcanic's issued and outstanding Common Shares and has the right to appoint one director to the Company's Board. Charles Straw, Volcanic's CEO, commented: \"We are very pleased to welcome Silvercorp as a significant shareholder of the Company, and look forward to their input and insights in implementing the Company's exploration and evaluation strategy.\" In connection with the Private Placement, the Company paid finder's fees totaling $311,833 in cash and issued a total of 1,497,330 finder's warrants with the same terms as the Warrants, which fees and warrants were paid to: Roth Capital Partners, as to $228,498 in cash and 1,163,990 in finder's warrants, Haywood Securities as to $49,000 in cash and 196,000 finder's warrants, Gerhard Merkel as to $27,685 in cash and 110,740 in finder's warrants, and Canaccord Genuity as to $6,650 in cash and 26,600 in finder's warrants. All securities issued in connection with the Private Placement are subject to a resale restriction in Canada until November 28, 2020. Of the $5 million in gross proceeds from the Private Placement, approximately $3.4 million is intended to be used for working capital purposes and approximately $1.6 million is intended to fund exploration work by the Company on the Holly and Banderas properties located in southeastern Guatemala which are proposed to be optioned to the Company (see news releases dated June 1, 2020 and Jun...