- Canadian investor Eric Sprott has acquired a C$2.9 million stake in Golden Tag Resources (GOG) as part of a $7 million private placement
- The company issued a total of 25 million units at a price of $0.28 each, comprised of one common share and half of one common share purchase warrant
- Each whole purchase warrant is exercisable at a price of $0.40 for a period of two years from the date of issuance
- The proceeds will be used to advance the company’s wholly owned San Diego Project in Durango, Mexico
- Golden Tag Resources (GOG) is currently up 2.94 per cent and is trading at 35 cents per share
Canadian investor Eric Sprott has acquired a C$2.9 million stake in Golden Tag Resources (GOG) as part of a $7 million private placement.
Under the terms of the placement, the Toronto-based company issued a total of 25 million units at a price of $0.28 each. These units are comprised of one common share in Golden Tag Resources and half of one common share purchase warrant.
Each whole warrant will entitle the holder to acquire an additional common share at a price of $0.40, exercisable over a period of two years from the date of issuance.
However, should the company’s shares trade at or above a price of $0.70 for a period of ten consecutive trading days, the expiry date of the warrants may be brought forward.
Eric participated in the placement for 10,700,550 units, representing 42.8 per cent of the total amount on offer. Prior to the placement, he held 18,625,932 common shares and 8,277,800 common share purchase warrants.
With the financing now complete, Eric beneficially owns 29,326,482 common shares and 13,628,075 common share purchase warrants, representing approximately 25.2 per cent of the company’s outstanding securities on a partially diluted basis, assuming the exercise of all pre-existing warrants.
In connection with the placement, $345,756 in cash and 1,198,130 finder’s warrants were issued to certain parties as consideration for their services, including Red Cloud Securities, PI Financial, PowerOne Capital Markets, Canaccord Genuity and Haywood Securities.
The proceeds raised will be used to advance Golden Tag’s wholly owned San Diego Project in Durango, Mexico, as well as for working capital and general corporate purposes.
Greg McKenzie, President and CEO of Golden Tag Resources, said the completion of the financing puts the company in a very strong position.
“We are pleased with the overwhelming support in this capital raise and are keen to move forward with the advancement of the company’s 100 per cent owned San Diego Project, as well as other strategic opportunities.
“Our strong balance sheet places the company in a position to evaluate opportunities that can sometimes be unavailable to junior companies,” he added.
Golden tag Resource (GOG) is up 2.94 per cent and is trading at 35 cents per share.