Spanish Mountain Gold Ltd (TSX-V:SPA, OTC:SPAZF) announced it has closed its previously announced brokered private placement for aggregate gross proceeds of approximately C$7.2 million.
The financing included the full exercise of the agent’s option.
The company issued 20,690,087 units at C$0.145 per unit, 7,121,850 flow-through share units at C$0.165 per unit, and 15,124,000 flow-through share units sold to charitable purchasers at C$0.20 per unit.
Red Cloud Securities acted as sole agent and bookrunner for the offering.
Each unit consists of one common share and one common share purchase warrant, with each warrant exercisable for one additional common share at C$0.22 until August 27, 2028.
Each flow-through unit includes one flow-through share and one-half of one warrant, with whole warrants exercisable for a common share at C$0.22 until the same date. Each charitable flow-through unit includes one flow-through share and one warrant.
Spanish Mountain Gold said it intends to use the net proceeds from the offering for exploration and development work at its 100%-owned Spanish Mountain Gold Project in the Cariboo Gold Corridor of British Columbia, as well as for working capital and general corporate purposes.
The gross proceeds from the sale of flow-through shares will be used to incur “Canadian exploration expenses” and “flow-through mining expenditures” as defined under the Income Tax Act (Canada).
These expenditures will be renounced to purchasers of the flow-through units and charitable flow-through units with an effective date no later than December 31, 2025.