Golden Tag Resources Ltd. (TSX-V:GOG, OTCQB:GTAGF) has told investors it plans to raise aggregate proceeds of up to $2 million through a non-brokered private placement of eight million units at $0.25 each.
The Toronto-based company said it intends to use the net proceeds of the offering to fund the advancement of its 100% owned San Diego Project in Mexico’s Durango state and for working capital and general corporate purposes.
Golden Tag noted that each unit in the placement will consist of one common share and one-half of a purchase warrant, with each whole warrant entitling the holder to acquire an additional share for $0.40 for 24 months following the closing of the offering. The warrants will contain an acceleration provision if the closing price of the stock is $0.70 or more for 10 consecutive trading days.
READ: Golden Tag Resources hits high-grade silver equivalent at its San Diego project in Mexico
The company said it reserves the right to increase the size of the offering, subject to the approval of the TSX Venture Exchange. It said it may pay finders’ fees in cash or securities, or a combination of both, as permitted by the policies of the exchange.
Golden Tag Resources Ltd. (TSX-V:GOG, OTCQB:GTAGF) is a junior exploration company exploring for high-grade silver deposits. The company holds a 100% interest, subject to a 2% net smelter return royalty (NSR), in the San Diego property in Durango State, Mexico.
The San Diego property is located within the prolific Velardeña Mining District, the site of several mines having produced silver, zinc, lead, and gold over the past century.
Contact the author at stephen.gunnion@proactiveinvestors.com