Golden Shield Resources (CSE:GSRI) Inc has announced a non-brokered private placement of up to 8,000,000 units of the company at a price of C$0.55 each for gross proceeds of up to C$4.4 million, which will be used for exploration and working capital purposes.
Each unit comprises one common share and one-half of one common share purchase warrant, with each warrant entitling the holder to purchase one common share of the company at an exercise price of C$1.00 for a period of 24 months following the closing date of the financing.
The warrants are subject to an accelerated expiry date, which comes into effect if the trading price of the company’s shares closes at or above $1.10 for any five days over any period of seven consecutive trading days. If that happens, the company will give warrant holders an expiry acceleration notice with the expiry date deemed to be 21 days from the date of the notice.
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The subscription by insiders will be considered a related party transaction, the company noted.
Separately, Golden Arrow said it has made an application to the TSX Venture Exchange to extend the term of 6,012,500 outstanding warrants. The company said it has requested two-year extensions for 4,062,500 warrants that are set to expire on June 19, 2022, and 1,950,000 warrants that are set to expire on June 20, 2022.
These warrants were originally issued under a single private placement completed in 2 tranches on June 19 and June 20, 2019, respectively. The exercise price of the warrants will remain at $0.30. Each warrant, when exercised, will be exchangeable for one common share of the company.
The amendment is subject to the approval of the TSX Venture Exchange.
Vancouver-based Golden Shield is exploring three high-grade gold projects in Guyana: Marudi Mountain, Arakaka and Fish Creek.
Contact the author at jon.hopkins@proactiveinvestors.com