Sassy Resources Corporation (CSE:SASY) (OTCQB:SSYRF) (FRA:4E7) has closed a non-brokered private placement financing in its subsidiary Gander Gold Corporation, including a strategic investment by well-known Canadian resource investor and gold bull Eric Sprott.
Sassy said the private placement of 45,425,000 special warrants, issued at $0.05 each, generated gross proceeds of $2,271,250.
The special warrants will be converted into common shares of Gander Gold at a date to be determined by the board of directors of the wholly-owned subsidiary, but no later than two weeks after Gander Gold becomes a reporting issuer, Sassy added.
READ: Sassy Resources expands Newfoundland property holdings
“We are very pleased to complete this financing in Gander Gold and to welcome Mr. Eric Sprott as a significant shareholder in Gander Gold,” said Sassy CEO Mark Scott.
“Through Gander Gold, Sassy has acquired a leading land position in the Central Newfoundland Gold Belt with some 9,032 claims under option. The company’s first-year assessment requirements are fully funded and these additional funds will allow us to execute an expanded exploration program across the 2,257 square kilometers of highly prospective ground under Sassy and Gander Gold’s control."
Scott added: "Our discovery team is going to be aggressive and we intend to add our own share of Sassy excitement to this rapidly emerging area play. An application for the public listing of Gander Gold on a Canadian exchange will be made during the second half of the year.”
Sassy previously purchased 105,991,667 common shares of Gander Gold at $0.005 per share, for an aggregate purchase price of $529,958.33. Combined with the private placement financing that closed on May 17, a total of $2,801,208.33 has been raised by Gander Gold.
Sassy said these funds will be used for initial cash payments associated with the four option agreements the company has entered into, for exploration costs in Newfoundland, and for general and administrative purposes.
It said there are currently a total of 105,991,667 common shares and 45,425,000 special warrants issued and outstanding in Gander Gold.
No other Gander Gold warrants, options, or other securities have been issued to date by the company, which intends to consolidate the outstanding common shares and special warrants in Gander Gold at a ratio of 3:1 and then convert the special warrants to common shares at a later date after which there will be a total 50,472,223 common shares issued and outstanding in Gander Gold, of which 35,330,556 (70%) will be held by Sassy.
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