Warrior Gold closes $936,805 in financings
2019-03-20 07:56 ET – News Release
Ms. Daniele Spethmann reports
WARRIOR GOLD CLOSES $936,805 OVERSUBSCRIBED FINANCING
Warrior Gold Inc. has closed the previously announced private placements (see news releases dated Jan. 21, 2019, Feb. 2, 2019, and Feb. 21, 2019) of flow-through shares and common share units with combined gross cash proceeds received of $936,805.
The company issued a total of 12,782,927 common share units at a price of seven cents per unit for aggregate proceeds of $894,805. Each unit consists of one common share and one-half of one common share purchase warrant. Each warrant entitles the holder to acquire one additional common share of the company for a period of 12 months from the date of issue at a price of 15 cents per commons share, provided that should the company’s shares trade at 30 cents per share or greater for a period of 20 consecutive trading days following the expiry of the four-month hold period, the warrants can be accelerated by the company providing notice to warrantholders and in such instance, the warrants will expire 30 days thereafter. Insiders of the company subscribed for an aggregate of 2,998,571 units for gross proceeds of $209,900 under the private placement.
As certain insiders of Warrior Gold participated in this private placement, it is deemed to be a related-party transaction as defined under Multilateral Instrument 61-101 — Protection of Minority Security Holders in Special Transactions. The company is exempt from the formal valuation requirement and the shareholder approval requirement of MI 61-101.
The company also issued 420,000 flow-through shares at a price of 10 cents per share for aggregate proceeds of $42,000. Each flow-through share consists of one common share issued on a flow-through basis which entitles the holder to receive the tax benefits applicable to flow-through shares, in accordance with provisions of the Income tax Act (Canada).
In connection with the private placement, the company paid finders’ fees equal to $40,092.40 in cash and 269,231 common share broker warrants issued on the same terms as the financing warrants, as permitted by the policies of the TSX Venture Exchange. All securities issued pursuant to the private placement, including certain insider participation in the private placement, are subject to a four-month hold period.
The proceeds from the unit private placement will be used for exploration and general corporate purposes, and the gross proceeds from the flow-through share private placement will be used for Canadian exploration expenses and will qualify as flow-through mining expenditures, as defined in the Income Tax Act (Canada).
About Warrior Gold Inc.
Warrior Gold is a TSX Venture Exchange-listed company and owns the Goodfish-Kirana property located five kilometres from the town of Kirkland Lake, Ont. The property is located in the historic Kirkland Lake gold camp which is situated in the prolific Abitibi greenstone belt, recognized as one of the world’s highest-grade greenstone belts with over 200 million ounces of gold produced to date.
We seek Safe Harbor.
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