Golden Tag Announces $5.6 Million Non-Brokered Financing Led by Eric Sprott
July 28 2020 - 7:00AM
Golden Tag Resources Ltd. (“
Golden Tag” or the
“
Company”) (
TSX.V: GOG) announces
that the Company will arrange a non-brokered private placement
pursuant (“
Private Placement”) to which it will
sell up to 20,000,000 Units (each, a “
Unit”) at a
price of C$0.28 per Unit to raise aggregate proceeds of up to
$5,600,000 (the “
Offering”). The Offering is
subject to an over-allotment option allowing Golden Tag to increase
the number of Units sold by an additional 5,000,000 Units for total
aggregate proceeds of $7,000,000, if fully exercised.
Mr. Eric Sprott, through 2176423 Ontario Ltd., a
corporation beneficially controlled by him, is subscribing for
19.9% or 3,980,000 Units in the Offering.
Each Unit will consist of one common share in
the capital of the Company (“Common Share”) and
one-half of one Common Share purchase warrant (each, a
“Warrant”). Each whole Warrant shall entitle the
holder thereof to acquire one Common Share at a price of C$0.40 for
24 months following the closing of the Offering, whereupon the
Warrants expire. The Warrants contain an acceleration provision
whereby if the closing price of the common shares on the TSX
Venture Exchange is $0.70 or more for 10 consecutive trading days
the Company will have the right to accelerate the expiry date of
the Warrants.
Finder's fees may be payable on a portion of the
Offering. PI Financial Corp, Red Cloud Securities Inc. and PowerOne
Capital Markets Limited are acting as finders in connection with
the Offering.
The securities issued and issuable pursuant to
the Offering will be subject to a four month and one day hold
period. The Company intends to use the net proceeds of the Offering
to fund advancement of the Company’s 100% owned San Diego Project,
in Durango Mexico, and for working capital and general corporate
purposes. The Offering is subject to certain conditions including,
but not limited to, the receipt of all necessary approvals,
including the approval of the TSX Venture Exchange and applicable
securities regulatory authorities.
The securities offered have not been registered
under the U.S. Securities Act of 1933, as amended (the
“U.S. Securities Act”), or applicable state
securities laws, and may not be offered or sold to persons in the
United States absent registration or an exemption from such
registration requirements. This press release shall not constitute
an offer to sell or the solicitation of an offer to buy nor shall
there be any sale of the securities in any jurisdiction in which
such offer, solicitation or sale would be unlawful.
About Golden Tag Resources
Golden Tag Resources Ltd. is a junior
exploration company exploring for high-grade silver deposits. The
Company holds a 100% interest, subject to a 2% NSR, in the San
Diego property in Durango State, Mexico. The San Diego property is
located within the prolific Velardeña Mining District, the site of
several mines having produced silver, zinc, lead, and gold over the
past century. For more information regarding the San Diego property
please visit our website at www.goldentag.ca. Golden Tag has no
debt and cash balances of approximately $2.1 million.
For additional information, please
contact:
Greg McKenzie, President & CEOPh:
416-504-2024greg.mckenzie@goldentag.cawww.goldentag.ca
Cautionary Statement:
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this news release.
Certain statements in this news release are
forward-looking and involve a number of risks and uncertainties.
Such forward-looking statements are within the meaning of the
phrase ‘forward-looking information’ in the Canadian Securities
Administrators’ National Instrument 51-102 – Continuous Disclosure
Obligations. Forward-looking statements are not comprised of
historical facts. Forward-looking statements include estimates and
statements that describe the Company’s future plans, objectives or
goals, including words to the effect that the Company or management
expects a stated condition or result to occur. Forward-looking
statements may be identified by such terms as “believes”,
“anticipates”, “expects”, “estimates”, “may”, “could”, “would”,
“will”, or “plan”. Since forward-looking statements are based on
assumptions and address future events and conditions, by their very
nature they involve inherent risks and uncertainties. Although
these statements are based on information currently available to
the Company, the Company provides no assurance that actual results
will meet management’s expectations. Risks, uncertainties and other
factors involved with forward-looking information could cause
actual events, results, performance, prospects and opportunities to
differ materially from those expressed or implied by such
forward-looking information. Forward looking information in this
news release includes, but is not limited to, the anticipated size
of the Offering, the Offering price, the anticipated closing date
and the completion of the Offering, the anticipated use of the net
proceeds from the Offering, the receipt of all necessary approvals,
and the Company’s intentions regarding its objectives, goals or
future plans and statements. Factors that could cause actual
results to differ materially from such forward-looking information
include, but are not limited to: an inability to complete the
Offering on the terms or on the timeline as announced or at all;
the ability to predict and counteract the effects of COVID-19 on
the business of the Company, including but not limited to the
effects of COVID-19 on the price of commodities, capital market
conditions, restriction on labour and international travel and
supply chains; failure to identify mineral resources; failure to
convert estimated mineral resources to reserves; the inability to
complete a feasibility study which recommends a production
decision; the preliminary nature of metallurgical test results;
delays in obtaining or failures to obtain required governmental,
environmental or other project approvals; political risks; changes
in equity markets; uncertainties relating to the availability and
costs of financing needed in the future; the inability of the
Company to budget and manage its liquidity in light of the failure
to obtain additional financing; inflation; changes in exchange
rates; fluctuations in commodity prices; delays in the development
of projects; capital, operating and reclamation costs varying
significantly from estimates and the other risks involved in the
mineral exploration and development industry; and those risks set
out in the Company’s public documents filed on SEDAR. Although the
Company believes that the assumptions and factors used in preparing
the forward-looking information in this news release are
reasonable, undue reliance should not be placed on such
information, which only applies as of the date of this news
release, and no assurance can be given that such events will occur
in the disclosed time frames or at all. The Company disclaims any
intention or obligation to update or revise any forward-looking
information, whether as a result of new information, future events
or otherwise, other than as required by law. No stock exchange,
securities commission or other regulatory authority has approved or
disapproved the information contained herein
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