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Golden Arrow Resources closes first tranche of C$3.3M private placement

The Argentina-focused exploration company plans to use the funds for general working capital

Map of Argentina
The company is actively exploring on its more than 200,000 hectares in Argentina

Golden Arrow Resources Corp (CVE:GRG) (OTCMKTS:GARWF) said it has closed the first tranche of a non-brokered private placement raising C$3.3 million.

The exploration company said late Friday in a statement that it issued 11,051,611 units at a subscription price of 30 cents per unit for total gross proceeds of C$3,315,483, which will be used for general working capital.

Each unit consists of one common share and one transferrable common share purchase warrant, according to the Vancouver-based company. Each warrant entitles the holder to purchase one additional common share at C$40 cents per share for two years from the date of issue. 

READ: Golden Arrow Resources hikes offering due to strong demand

Shares of Golden Arrow traded at C$0.34 in Friday’s Canadian trading and fetched US$0.25 on the OTC Markets.

Golden Arrow owns a 25% share of Puna Operations Inc, a joint venture operated by SSR Mining Inc (NASDAQ:SSRM) (TSE: SSRM), with more than eight years of forecast production at the Pirquitas-Chinchillas silver mining project in Argentina. In addition, Golden Arrow is actively exploring on its more than 200,000 hectares (495,000 acres) in Argentina.

Under the financing, finder's fees of C$112,184 are payable in cash on a portion of the private placement to parties at arm's length to the Vancouver-based company. In addition, 373,948 non-transferable finder warrants are being issued, with each finder warrant entitling a finder to purchase one common share at a price of C$40 cents per share for two years from the date of issue, expiring June 25, 2021.

Insiders of the company participated in the first tranche of the private placement for C$467,400 in units, according to Golden Arrow.

This financing is subject to regulatory approval, and all securities to be issued pursuant to the financing are subject to a four-month hold period expiring on June 25, 2021, the company said.

Contact Dennis Fitzgerald at [email protected]
 

Quick facts: Golden Arrow Resources Corp

Price: 0.145 CAD

TSX-V:GRG
Market: TSX-V
Market Cap: $17.33 m
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