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.
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]