The Prospector News

Signature Announces Closing of First Tranche of Previously Announced Private Placement

You have opened a direct link to the current edition PDF

Open PDF Close

Share this news article






Signature Resources Ltd. (TSX-V: SGU) (OTCQB: SGGTF) (FSE 3S3) is pleased to announce the closing of the first tranche of the non-brokered private placement announced on August 17, 2020. In this first tranche, the Company raised aggregate gross proceeds of $1,170,034 by issuing 22,560,686 hard dollar units at a price of $0.05 per HD Unit and 700,000 flow-through units at a price of $0.06 per FT Unit. The Company expects to close on the balance of the $1,500,000 Offering in a second tranche.


“We are extremely pleased to that investors have enthusiastically embraced this first tranche of our Offering. They recognize the potential of Signature as the company continues to explore and develop its Lingman Lake gold property,” commented Walter Hanych, CEO and President.


Each HD Unit issued pursuant to the First Tranche consists of one common share of the Company and one common share purchase warrant. Each FT Unit consists of one common share of the Company issued on a flow-through basis and one half of one Warrant. Each whole Warrant issued pursuant to the First Tranche will be exercisable into one Common Share at a price of $0.10 until August 25, 2022, provided that if after four months and one day following the closing of the First Tranche, the closing price of the Company’s Common Shares on the TSX Venture Exchange is equal to or greater than $0.20 for 10 consecutive trading days, then the Company may accelerate the expiry date of the Warrants by disseminating a press release and in such case the Warrants will expire on the 30th day after the date on which such press release is disseminated by the Company. The FT Shares will qualify as “flow-through shares” (within the meaning of the Income Tax Act (Canada)).  


In connection with the First Tranche. the Company paid aggregate cash finder’s fees of $51,640 and issued 1,018,800 finder’s warrants. Each Finder’s Warrant is exercisable to acquire one Common Share at a price of $0.05  and $0.06  for a period of 24 months following closing of the First Tranche.


The Company also wishes to announce that a crew has been dispatched to the Lingman property to prepare the camp for a field exploration teams, which will be arriving beginning of September, to access high priority geophysical targets. The camp will also be upgraded for winter conditions in anticipation of winter drill program in 2021.


Signature intends to use the proceeds of the Offering for general working capital purposes, and for the development of the Company’s Lingman Lake Project. The proceeds of the Offering related to FT Units will be used to incur eligible Canadian exploration expenses, as defined under the Income Tax Act (Canada) on or before December 31, 2021 for the continued advancement of the Company’s Lingman Lake project. The Company will renounce the Qualifying Expenditures to investors with an effective date of no later than December 31, 2020.


The purchase of HD Units under the First Tranche of the Offering by Walter Hanych (Chief Executive Officer of the Company) constituted a “related party transaction” as such term is defined by Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions. The Company was exempt from the MI 61-101 valuation and minority approval requirements for related party transactions in connection with the Offering under sections 5.5(a) and 5.7(1)(a) of MI 61-101 as neither the fair market value (as determined under MI 61-101) of the subject matter of, nor the fair market value of the consideration for, the transaction, insofar as it involves Mr. Hanych, exceeds 25% of the Company’s market capitalization (as determined under MI 61-101).


All securities issued in the First Tranche of the Offering, including the Finder’s Warrants, are subject to a statutory hold period expiring on December 26, 2020.


This press release does not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall it constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale is unlawful. These securities have not been, and will not be, registered under the United States Securities Act of 1933, as amended, or any state securities laws, and may not be offered or sold in the United States or to U.S. persons unless registered or exempt therefrom.


About Signature


The Lingman Lake gold property consists of 622 staked claims, four free hold full patented claims and 14 mineral rights patented claims totaling approximately 12,148 hectares. The property hosts an historical estimate of 234,684 oz of gold* (1,063,904 tonnes grading 6.86 g/t with 2.73 gpt cut-off) and includes what has historically been referred to as the Lingman Lake Gold Mine, an underground substructure consisting of a 126.5-meter shaft, and 3-levels at 46-meters, 84-meters and 122-meters depths.


This historical resource estimate is based on prior data and reports obtained and prepared by previous operators, and information provided by governmental authorities. A Qualified Person has not done sufficient work to verify the classification of the mineral resource estimates in accordance with current CIM categories. The Company is not treating the historical estimate as a current NI 43-101 mineral resource estimate. Establishing a current mineral resource estimate on the Lingman Lake deposit will require further evaluation, which the Company and its consultants intend to complete in due course. Additional information regarding historical resource estimates is available in the technical report entitled, “Technical Report on the Lingman Lake Property” dated December 20, 2013, prepared by Walter Hanych, P.Geo., and Frank Racicot, P.Geo., available on the Company’s SEDAR profile at


Posted August 26, 2020

Share this news article


Fortuna Reports First Quarter 2021 Financial Results

Fortuna Silver Mines Inc. (NYSE: FSM) (TSX: FVI) reported record... READ MORE

May 10, 2021

McEwen Mining Reports Upbeat Exploration & Delineation Results

Including true width intervals of 6.08 g/t Au over 25.7 m at Stoc... READ MORE

May 10, 2021

Imperial Reports First Quarter 2021 Financial Results

Imperial Metals Corporation (TSX:III) reports financial results ... READ MORE

May 10, 2021

McEwen Mining: Q1 2021 Results

McEwen Mining Inc. (NYSE: MUX) (TSX: MUX)  reported its first qu... READ MORE

May 10, 2021

Cameco reports first quarter results, Cigar Lake restart and the continued execution of strategy to support global clean-air transition

Cameco (TSX: CCO) (NYSE: CCJ) reported its consolidated financial... READ MORE

May 7, 2021

Copyright 2021 The Prospector News