Golden Tag Resources Ltd. (TSX-V:GOG, OTCQB:GTAGF) has announced its intention to complete a non-brokered private placement financing of subscription receipts to raise gross proceeds of C$9 million.
The mineral resource exploration company said the offering is being completed in connection with its previously-announced acquisition of the La Parrilla Silver Mine Complex in Mexico, and it intends to use the net proceeds to fund drilling and exploration programs at La Parrilla, holding costs, technical work for restart, transaction costs and for working capital and general corporate purposes.
Golden Tag noted the offering will involve the issuance of 45 million subscription receipts at a price of C$0.20 per receipt, with each subscription receipt entitling the holder to receive one unit of the company.
READ: Golden Tag Resources to acquire La Parrilla silver mine complex in Durango from First Majestic Silver
Each unit will be comprised of one company common share plus one-half of one common share purchase warrant, with each whole warrant being exercisable to acquire one Golden Tag common share at a price of C$0.34 per share for a period of 36 months from the date of the exchange of the subscription receipts.
Golden Tag added that First Majestic Silver Corp. (TSX:FR) will subscribe for US$2.7 million of subscription receipts.
The securities issued and issuable pursuant to the offering will be subject to a four month and one-day hold period from the date of closing, and is subject to certain conditions including, but not limited to, the completion of documentation and the receipt of all necessary regulatory and other approvals, including the approval of the TSX Venture Exchange, according to the company.
As well, Golden Tag stated it may pay finders’ fees in cash or securities, or a combination of both, as permitted by the policies of the TSX Venture Exchange.
Headquartered in Toronto, Golden Tag Resources' 100% owned San Diego property in Mexico is one of the largest undeveloped silver assets in the country.
Contact Sean at sean@proactiveinvestors.com