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Volcanic increases proposed Private Placement to $5.0 million; Silvercorp Metals to acquire 19.9% of Volcanic
(via TheNewswire) June 25, 2020 - TheNewswire - Vancouver, British Columbia - V...
About this update from Volcanic Gold Mines Inc.
[{"type":"text","content":"Volcanic increases proposed Private Placement to $5.0 million; Silvercorp Metals to acquire 19.9% of Volcanic(via TheNewswire)\n \n \nJune 25, 2020 - TheNewswire - Vancouver, British Columbia - Volcanic Gold Mines Inc. (TSXV:VG) (\"Volcanic\" or the \"Company\") is pleased to report that further to its news release of June 4, 2020, its proposed non-brokered private placement (the \"Private Placement\") has been increased from $3.0 million to $5.0 million. The Private Placement will now consist of 20,000,000 units (\"Units\") of Volcanic at a price of $0.25 per Unit for total proceeds of $5.0 million.\n\n\n \nVolcanic is also pleased to announce that Silvercorp Metals Inc. (\"Silvercorp\") has indicated its intent to participate in the Private Placement by subscribing for approximately 5.69 million of the Units at a purchase price of approximately $1.42 million. On closing of the Private Placement, Silvercorp will, subject to stock exchange approval, own 19.9% of the issued and outstanding common shares of Volcanic. Silvercorp will be entitled to appoint one director to the board of directors of the Company and have the right to participate in future equity financings to maintain its pro rata interest in the outstanding common shares of the Company. \n\n\n \nEach Unit will consist of one common share and one-half of one common share purchase warrant. Each whole warrant will entitle the holder to purchase one common share at a price of $0.30 for a term of 24 months following closing of the Private Placement.\n\n\n \nThe Company may pay a finder's fee on all or a portion of the Private Placement. The proceeds of the Private Placement are intended to be used for general working capital purposes and to fund exploration work on Volcanic's optioned properties in Guatemala. The Private Placement is subject to approval by the TSX Venture Exchange. All securities issued pursuant to the Private Placement will be subject to the applicable statutory four-month hold period.\n\n \n \nThis news release does not constitute an offer to sell or a solicitation of an offer to buy the securities described herein in the United States or in any other jurisdiction. The securities referred to in this press release have not been and will not be registered under the U.S. Securities Act and may not be offered or sold without registration under the U.S. Secu...