Spanish Mountain Gold Ltd. (TSX-V:SPA) has closed its brokered private placement offering of flow-through units and non-flow through units previously announced in a news release dated September 5, 2013.
Pursuant to the Offering, 8,719,136 flow-through units have been placed at a price of $0.12 per FT Unit and 1,974,000 non-flow through units have been placed at a price of $0.10 per Unit, for total gross proceeds of approximately $1,245,000. Each FT Unit consists of one flow-through common share of the Company and one-half of one common share purchase warrant of the Company. Each FT Share is designated as a “flow-through share” for the purposes of the Income Tax Act (Canada). Each Unit consists of one common share of the Company and one Warrant. Each Warrant entitles the holder to acquire a common share of the Company at a price of $0.15 per share for a period of 24 months.
The Offering was conducted pursuant to an agency agreement dated September 27, 2013 between the Company and Secutor Capital Management Corporation. Pursuant to the terms of the Agency Agreement, the Company (i) paid the Agent a cash commission of $43,529, representing 3.5% of the aggregate gross proceeds of the Offering, (ii) issued to the Agent an aggregate of 435,294 Units, and (iii) issued to the Agent and aggregate of 534,656 compensation warrants with each Compensation Warrant exercisable to acquire one common share of the Company at a price of $0.10 per share for a period of 24 months.
The Company also closed a non-brokered private placement of 2,000,000 Units at a price of $0.10 per Unit for aggregate gross proceeds of $200,000.
The Offering and Non-Brokered Offering were available only to accredited investors, and all of the securities issued in connection therewith are subject to a statutory four-month hold period expiring on January 28, 2014.
The gross proceeds from the sale of the FT Units will be used by the Company to incur exploration expenditures on the Company’s Spanish Mountain project and will constitute “Canadian exploration expenses” and “flow through mining expenditures” (as defined in the Tax Act) which will be renounced to purchasers of the FT Units for the 2013 taxation year. The net proceeds from the sale of the Units will be used by the Company for general corporate purposes.
The Offering is subject to final acceptance by the TSX Venture Exchange upon filing of final documentation.
About Spanish Mountain Gold
Spanish Mountain Gold Ltd is focused on the responsible development of its flagship Spanish Mountain gold project in southern central British Columbia. The Company has no debt and owns 100% of all four gold properties located in British Columbia.
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