Spanish Mountain Gold Ltd (TSX-V:SPA, OTC:SPAZF) said on Thursday it plans to raise up to C$5 million through a private placement to fund exploration and development at its flagship gold project in British Columbia.
The offering will consist of up to 20.7 million units priced at C$0.145 each, raising up to C$3 million, and up to 12.1 million flow-through units at C$0.165 per unit for proceeds of up to C$2 million.
Each unit will include one common share and one warrant exercisable at C$0.22 for 36 months. Each flow-through unit will include one flow-through share and one-half warrant, with full warrants also exercisable at C$0.22 for three years.
Red Cloud Securities has also been granted an option to sell up to an additional C$1 million in securities under the same terms.
Proceeds from the offering will be used to advance the Spanish Mountain Gold Project, located in the Cariboo Gold Corridor, as well as for working capital and general corporate purposes, the company said.