Golden Tag Resources Ltd has said it will increase the size of its previously-announced, non-brokered private placement by up to five million company units, raising additional gross proceeds of up to C$1.25 million due to “strong investor demand”.
Golden Tag noted that together with the first tranche, which closed on February 8, 2022, up to 13 million company units may be issued under the offering at a price of $0.25 per unit.
The company said it intends to use the net proceeds of the upsized offering to fund advancement of its 100% owned San Diego project in Mexico, and for working capital and general corporate purposes.
READ: Golden Tag Resources hits high-grade silver near surface at its San Diego project in Mexico
Each unit of the private placement will consist of one Golden Tag Resources common share plus one-half of one common share purchase warrant, with each whole warrant entitling the holder to acquire one company common share at a price of C$0.40 for 24 months following the closing of the upsized offering.
Golden Tag noted that the warrants will contain an acceleration provision whereby if the closing price of the common shares on the exchange is $0.70 or more for 10 consecutive trading days the company will have the right to accelerate the expiry date of the warrants.
All securities issued will be subject to a four-month and one-day hold period.
Toronto-based Golden Tag Resources considers its San Diego project to be one of Mexico’s largest undeveloped silver assets, with an estimated Indicated resource of 31.6 million silver ounces at an average grade of 60 grams per tonne (g/t) and 438 million pounds of zinc, along with an Inferred silver resource of 83.8 million ounces at 62 g/t and 1.2 billion pounds of zinc. The resource estimate, completed in 2013, is based on 59 holes totaling 33,000 metres.
Contact Sean at sean@proactiveinvestors.com