Business
Waraba Gold Closes First Tranche of Private Placement of Units
Vancouver, British Columbia--(Newsfile Corp. - March 27, 2023) - Waraba Gold Limited (CSE: WBGD) (FSE: ZE0) (OTCQB: WARAF) (the "Company" or "Waraba") announces
About this update from Waraba Gold Limited
[{"type":"text","content":" Vancouver, British Columbia--(Newsfile Corp. - March 27, 2023) - Waraba Gold Limited (CSE: WBGD) (FSE: ZE0) (OTCQB: WARAF) (the \"Company\" or \"Waraba\") announces it has closed the first tranche of a non-brokered private placement financing for gross proceeds of up to CAD$1,500,000 (the \"Private Placement\") through the issuance of up to 15,000,000 units of the Company (the \"Units\") at a price of $0.10 per Unit, to be completed in tranches, on one or more closing dates. In connection with the first tranche of the Private Placement, the Company issued 9,257,000 Units at a price of $0.10 per Unit, for aggregate gross proceeds of $926,000.00 (the \"First Tranche\"). Each Unit shall be comprised of one common share of the Company (each, a \"Common Share\") and one common share purchase warrant of the Company (each, a \"Warrant\"). Each Warrant will entitle the holder thereof to acquire one (1) additional Common Share (each, a \"Warrant Share\") at an exercise price of $0.50 per Warrant Share for a period of 12 months following the closing date of the Private Placement, subject to acceleration in certain events. The gross proceeds raised from the Private Placement will be used by the Company for exploration and general working capital purposes. The Common Shares and Warrants issued under the Private Placement, and the Warrant Shares (if exercised before the end of the statutory hold period) will be subject to a statutory hold period expiring four months and one day from the date of issuance. The Offering constitutes a related party transaction within the meaning of Multilateral Instrument 61-101 (\"MI 61-101\") as a certain director of the Company subscribed for Units in the First Tranche. The Company relied on the exemptions from the valuation and minority shareholder approval requirements of MI 61-101 contained in Sections 5.5(a) and 5.7(1)(a) of MI 61-101 with respect to the insider participation in the Private Placement as the fair market value of the consideration of the securities issued to the related party did not exceed 25% of the Company's market capitalization. The Company did not file a material change report more than 21 days before the expected closing of the First Tranche as the details of the Private Placement and the participation therein by related parties of the Company were not settled until shortl...