Golden Shield Resources (CSE:GSRI, OTCQB:GSRFF) Inc said it has completed its previously-announced brokered private placement, raising gross proceeds of C$4.6 million by issuing 23 million company units at a price of $0.20 per unit.
The gold exploration company noted that net proceeds from the offering will be used for exploration of its flagship Marudi property, including diamond drilling, aircore drilling, trenching, pitting, hand augering, mapping and sampling, and for general working capital purposes.
“We must also acknowledge our appreciation of our long term shareholders who continue to support us and welcome a number of new investors,” Golden Shield Resources (CSE:GSRI, OTCQB:GSRFF) executive chair Leo Hathaway said in a statement.
“We look forward to sharing our upcoming exploration plans over the coming weeks,” he added.
Each unit of the private placement consisted of one company common share plus one-half of one common share purchase warrant, with each warrant entitling the holder to purchase one Golden Shield common share for a period of 24 months following the closing date of the offering, at an exercise price of $0.30 for the 12 month period following the closing date, after which time the exercise price will increase to $0.40 for the remaining term of the warrants.
Canaccord Genuity (TSX:CF, LSE:CF) acted as agent for the company on a 'best efforts' agency basis in connection with the private placement and will be paid a cash commission equal to 7% of the gross proceeds of the offering.
Canaccord was also issued Golden Shield broker warrants, exercisable for a period of 24 months following the closing date of the offering, to acquire the number of company common shares equal to 7% of the number of units sold under the offering, the company said.
Golden Shield Resources (CSE:GSRI, OTCQB:GSRFF) is a gold exploration company focused on three highly prospective 100%-owned exploration projects in Guyana, South America: Marudi Mountain, Arakaka, and Fish Creek.
Contact Sean at sean@proactiveinvestors.com