Outcrop Gold Corp. (TSX-V: OCG) is pleased to announce that following the release of favorable drill results from its Santa Ana project that Eric Sprott has taken a stake in the Company through a non-brokered private placement financing, consisting of 10,000,000 units at a price of $0.10 per Unit for gross proceeds of $1,000,000. Each Unit consists of one common share and one common share purchase warrant in the capital of the Company. Each Warrant is exercisable into one common share of the Company at a price of $0.20 per common share expiring on November 7, 2024.
As a result, Eric Sprott through 2176423 Ontario Ltd., a corporation which is beneficially owned by him will acquire 10,000,000 common shares and 10,000,000 share purchase warrants, representing 12.7% of the issued and outstanding shares on a non-diluted basis, and 22.6% on a partially diluted basis, assuming exercise of the warrants. Mr. Sprott did not beneficially own any securities in the Company prior to this investment.
Closing of the placement remains subject to the approval of the TSX Venture Exchange.
The proceeds from the sale of the shares will be used primarily to fund exploration on the Company’s Santa Ana project, and for general working capital.
The Units were acquired by Mr. Sprott for investment purposes and with a long-term view of the investment. Mr. Sprott may acquire additional securities of the Company either on the open market or through private acquisitions or sell securities of the Company either on the open market or through private dispositions in the future, depending on market conditions, reformulation of plans and/or other relevant factors.
About Outcrop Gold
Outcrop is a gold prospect generator active in Colombia acquiring gold exploration projects with world-class discovery potential. Outcrop performs its own grass roots exploration and then employs a joint venture business model on its projects to maximize investor exposure to discovery and minimize financial risk. Outcrop will conduct focused drilling on flagship properties such as Santa Ana to create its own catalysts for value creation and to receive full value for future joint ventures or dispositions.
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We acknowledge the [financial] support of the Government of Canada.