Savary Gold Corp. (TSX-V:SCA) has closed its non brokered private placement financing announced on February 26, 2015, which was upsized on March 12, 2015, for total gross proceeds of $3,000,000. The financing was oversubscribed and the Company scaled back the financing to $3,000,000.
Mr. Don Dudek, President and CEO of Savary Gold commented: “I am pleased to welcome Ross Beaty as our newest strategic shareholder. His support, along with that of Altus Securities, allowed Savary to upsize the original financing amount by 50% to $3 million. It has been gratifying that Savary was able to obtain such strong support, for what I believe is a strong exploration story.” Mr Dudek continued, “Now that the financing has closed, Savary will be finalizing the details of a drill program on the Karankasso Project in the Hounde Belt, Burkina Faso, with our 35% JV partner Sarama Resources Ltd. The goal of the program will be to complete additional drill testing of six of the mineralized zones and to test nine exciting new targets. We hope to begin the program as early as next month.”
Savary has issued 60,000,000 Units at a price of $0.05 per Unit. Each Unit is comprised of one common share of the Company and one-half of one common share purchase warrant (each whole warrant, a “Warrant”). Each Warrant entitles the holder thereof to acquire one common share of the Company at an exercise price of $0.08 per common share until March 20, 2018.
The proceeds from the financing will be used to finance an exploration program on the Karankasso Project, Hounde belt, Burkina Faso, with partner Sarama Resources Ltd. and for general corporate purposes. The common shares and the common shares issuable upon the exercise of the Warrants are subject to statutory resale restrictions which expire on July 21, 2015.
Closing of the Offering remains subject to receipt of all applicable regulatory approvals, including final approval of the TSX Venture Exchange.
As a result of the private placement, Mr. Ross Beaty has become an Insider of Savary with the purchase of 28,000,000 million Units and subsequently owning 19.99% of the issued and outstanding common shares of the company after giving effect to the private placement. Mr. Beaty signed an undertaking agreeing not to convert, exercise, or exchange Warrants issued to it by Savary under the Offering which, if exercised, will result in Mr. Beaty, together with any parties acting jointly and in concert with Mr. Beaty, holding greater than 19.99% of the issued and outstanding common shares of Savary. At Savary’s next Shareholder Meeting, shareholder approval will be sought to allow Mr. Beaty the right to increase his ownership above the 19.99% threshold through the exercise of Warrants associated with the Offering.
In connection with the Offering, Savary will pay cash finders’ fees totaling $103,425 and finders warrants of 2,908,500.
About Savary Gold
Savary Gold is a Canadian exploration company, along with partner, Sarama Resources Limited, are focused on exploring the Hounde South and Serakoro 1 Gold Properties in Burkina Faso. The properties are in the Birimian age Hounde Greenstone Belt, which hosts Semafo’s Mana mine and additional gold deposits that are presently subject to extensive exploration efforts (including Endeavour Mining’s Hounde Project, Roxgold Yaramoko Project and Sarama’s South Hounde Project, which is adjacent to Savary Gold’s property).
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