Spanish Mountain Gold Ltd (TSX-V:SPA, OTC:SPAZF) announced on Friday the completion of its brokered and non-brokered private placements, raising aggregate gross proceeds of C$8.3 million.
Funds from the financing will be used to advance the company’s Spanish Mountain Gold Project in British Columbia, Canada, including exploration drilling, updating its Preliminary Economic Assessment, and other initiatives.
The brokered private placement raised C$7.5 million, including the full exercise of the agent's over-allotment option, through the issuance of 48,256,000 securities that included 20,553,000 units priced at C$0.135 per unit, 18,118,000 flow-through share units at C$0.155 each, and 9,585,000 charity flow-through share units priced at C$0.20.
The non-brokered private placement contributed an additional C$800,000 with the issuance of 5,925,926 units at C$0.135 each.
Each unit comprises one common share and one common share purchase warrant, allowing the holder to acquire an additional share at C$0.18 until November 15, 2026. The flow-through units include one flow-through share and a half warrant, with each full warrant exercisable at C$0.23 until the same date.
Charity flow-through units include one flow-through share and one warrant exercisable at C$0.18.
Proceeds from flow-through shares will be allocated to Canadian exploration expenses and flow-through mining expenditures.
Spanish Mountain Gold plans to use the funds to enhance its understanding of the project's mineral endowment and support general working capital.
The Spanish Mountain Gold Project is a multi-million-ounce gold resource located in British Columbia, with a focus on environmentally responsible mining practices.