Golden Tag Resources Ltd said it has closed the first tranche of the non-brokered private placement announced on January 20, 2022, for aggregate gross proceeds of $1,791,667.50.
The company has said it intends to use the net proceeds of the offering to finance advancement of the company's 100%-owned San Diego project in Durango, Mexico, and for working capital and general corporate purposes.
Under the first tranche, the company issued 7,166,670 units at $0.25 each. Each unit in the offering consists of one common share and one-half of one common share purchase warrant. Each whole warrant issued pursuant to the first tranche entitles the holder to acquire one common share at a price of 40 cents until February 8, 2024.
READ: Golden Tag Resources is focused on the San Diego Project, which is among the largest undeveloped silver assets in Mexico
The warrants contain an acceleration provision whereby if the closing price of the common shares on the exchange is 70 cents or more for ten consecutive trading days, the company will have the right to accelerate the expiry date of the warrants.
In connection with the first tranche, the company paid aggregate cash finders' fees of $39,800 and issued 140,000 finders' warrants. Each finder's warrant entitles the holder to purchase one share at a price of 25 cents for a period of 24 months following closing of the first tranche, subject to the acceleration provision.
The securities issued and issuable under the first tranche of the offering will be subject to a four-month-and-one-day hold period.
The offering remains subject to TSX Venture Exchange final acceptance.
Golden Tag is a junior exploration company exploring for high-grade silver deposits. The company holds a 100% interest, subject to a 2% NSR (net smelter royalty), in the San Diego property in Durango state, Mexico.
The San Diego property is located within the prolific Velardena mining district, the site of several mines having produced silver, zinc, lead and gold over the past century.
Contact the author at jon.hopkins@proactiveinvestors.com