Goldsource Mines Inc. (TSX-V:GXS) (FWB: G5M) is pleased to announce the completion of its non‑brokered private placement announced on January 16 and 31, 2017. The Company issued 26,233,450 units at a price of $0.17 per Unit for gross proceeds of $4,459,686. Each Unit consisted of one common share and one common share purchase warrant of Goldsource, with each warrant being exercisable for one common share of Goldsource at a price of $0.23 for a term of 2 years.
Proceeds from the private placement will be used for the Company’s Eagle Mountain Gold Project capital and operating improvements, resource expansion, repayment of outstanding loan, and general corporate purposes. Please see news release dated January 9, 2017 for more detailed information on the Company’s planned operations for 2017.
Yannis Tsitos, President, stated, “We are very pleased to have concluded this financing with such success. We look forward to pursuing our plans at our Eagle Mountain Gold Project and to achieving certain milestones in 2017 as described in our recent announcements.”
The shares and warrants issued under the private placement and the shares issuable upon exercise of the warrants are subject to a hold period that expires on June 9, 2017.
Certain directors, officers and other insiders of the Company purchased or acquired direction and control over a total of 9,235,046 Units under the private placement. The placement to those persons constitutes a “related party transaction” within the meaning of TSX Venture Exchange Policy 5.9 and Multilateral Instrument 61‑101 ‑Protection of Minority Security Holders in Special Transactions (“MI 61‑101”) adopted in the Policy. The Company has relied on exemptions from the formal 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 in respect of related party participation in the placement. Further details will be included in a material change report to be filed by the Company. The material change report will not be filed more than 21 days prior to closing of the placement due to the timing of the announcement of the increased private placement and closing occurring in less than 21 days.
The Company agreed to pay 6% finders’ fees totalling $28,529 in respect of the placement of certain Units.
ABOUT GOLDSOURCE MINES INC.
Goldsource Mines Inc is a Canadian resource company that is currently in the Proof of Concept Phase at it 100%-owned Eagle Mountain Gold Project, located in Guyana. Goldsource is led by an experienced management team, proven in making exploration discoveries and in project construction.
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