Golden Shield Resources Corp said it has closed its previously announced brokered private placement, issuing a total of 14,624,302 units at a price of C$0.43 each for gross proceeds to the company of approximately $6,288,450 which includes the partial exercise of the agent's over-allotment option.
Gold Shield said net proceeds from the offering will be used to advance exploration on the company's properties in Guyana, as well as for working capital and general corporate purposes.
"The completion of this financing will allow Golden Shield to continue extending mineralization at the Mazoa Hill prospect as well as drill test additional exciting prospects at the Marudi Mountain project," said Leo Hathaway, executive chair of the company in a statement.
READ: Golden Shield Resources upsizes previously announced private placing to raise up to around C$5.5M
Each unit in the offering consists of one common share in the capital of the company and one common share purchase warrant. Each warrant entitles the holder to purchase one common at a price of C$0.60 for a period of 24 months following the closing date.
Canaccord Genuity acted as agent for the company on a 'best efforts' agency basis in connection with the offering. In consideration for the services provided by the agent in connection with the offering, on closing the company paid to the agent a cash commission equal to 6% of the gross proceeds of the offering (other than in respect of sales to purchasers on the President's List, for which the commission was reduced to 2.0%) and issued broker warrants of the company to the agent, exercisable at any time on or before July 5, 2024, to acquire that number of common shares in the capital of the company which is equal to 6% of the number of units sold under the offering (other than in respect of sales to purchasers on the President's List, for which the number of broker warrants was reduced to 2.0%) at an exercise price of C$0.43.
The securities issued under the offering have a hold period of four months and one day from closing, expiring on November 6, 2022.
The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended or under any US state securities laws, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the 1933 Act, as amended, and applicable state securities laws.
Golden Shield Resources was founded by experienced professionals who are convinced that there are many more gold mines yet to be found in Guyana.
The company is well-financed and has three wholly controlled gold projects: Marudi Mountain, Arakaka, and Fish Creek. Golden Shield continues to evaluate other gold opportunities in Guyana.
Contact the author at jon.hopkins@proactiveinvestors.com