Spanish Mountain Gold Ltd (TSX-V:SPA, OTC:SPAZF) announced that due to strong investor interest, it will be offering additional units of the company through a non-brokered private placement, priced at C$0.135 per unit for gross proceeds of up to C$800,000.
This financing will occur alongside an earlier brokered placement for up to C$6.5 million, aiming for total proceeds of up to C$7.3 million, potentially reaching C$8.3 million with the agent's option.
The combined offering includes units at C$0.135, flow-through units at C$0.155, and charitable flow-through units at C$0.20.
Each unit comprises one common share and a warrant exercisable at C$0.18 for 24 months. The flow-through units come with half-warrants exercisable at C$0.23 for the same period.
Spanish Mountain Gold intends to use the proceeds to support general working capital needs, complete a new Preliminary Economic Assessment, and conduct additional drilling on the Spanish Mountain property to explore new targets and expand mineral understanding.
Funds from the flow-through shares will be allocated to qualifying Canadian exploration expenses, with tax renunciations provided to investors by December 31, 2024.