Blue Lagoon Captures over $8M in Financing Led by Crescat BLUE LAGOON COMPLETES $8.13 MILLION PRIVATE PLACEMENT LEAD BY A STRATEGIC INVESTMENT BY CRESCAT CAPITAL FOR $1.5 MILLION
STRONG MARKET DEMAND LEADS TO 48% OVER SUBSCRIPTION
July 15, 2021 – Vancouver, British Columbia – Blue Lagoon Resources Inc. (the “Company”) (CSE: BLLG; FSE: 7BL; OTCQB: BLAGF) is pleased to announce that further to its news release dated July 8, 2021, the Company has closed a non-brokered flow through and non-flow through financing for proceeds of $8,130,908.31. Crescat Capital LLC (“Crescat”) was the lead order and made a strategic investment of $1.5 Million, representing more than 18% of the total financing. In addition, Crescat requested and secured, participation rights that provide for an option to participate in all future financings.
“We are very pleased with the strong market demand that came from sophisticated investors whose desire to participate in our company lead to a strong closing of this financing which was 48% over subscribed,” said Rana Vig, President & CEO of Blue Lagoon Resources. “With this capital raise, an existing healthy treasury, no debt, and nearly $4 million in-the-money warrants, the Company will be very well funded to execute on an aggressive drill program at Dome Mountain this year, one that could result in the recognition of Dome Mountain as a potentially large, high-grade gold system," he added.
FINANCING DETAILS
The private placement (the “Private Placement”) consisted of 4,761,154 charity flow-through units (“Charity Units”) at a price of $0. 7425 per Unit, 609,758 regular flow-through units (the “FT Units”) at a price of $0.82 per unit, and 7,446,818 non-flow-through units (the “NFT Units”) at a price of $0.55 per unit, for aggregate gross proceeds to the Company of $8,130,908.31. Each of the units is comprised of one common share of the Company and one-half of one common share purchase warrant. Each whole warrant is exercisable into one common share of the Company at an exercise price of $0.75 per share in the case of the Charity Units and the NFT Units, or $1.10 per share in the case of the FT Units, until July 15, 2023.
Proceeds from the sale of the Charity Units and FT Units will be used for exploration activities in accordance with flow-through tax rules. Proceeds from the sale of the NFT Units will be used for exploration as well as for general working capital purposes.
The Company paid finders’ fees in cash in the aggregate amount of $171,863.08, equal to 7% of the gross proceeds from the sale of Units to certain third parties sourced by the finders and issued an aggregate of 202,199 finders’ warrants to purchase that number of common shares of the Company, equal to 7% of the number of Units sold to those third parties. The finder’s warrants may be exercised to acquire common shares of the Company at a price of $0.75 per common share until July 15, 2023 and are otherwise on the same terms as the Private Placement warrants. 42,683 finder’s warrants are exercisable at a price of $1.10 per common share until July 15, 2023.
The securities issued pursuant to the Private Placement are subject to a statutory four month hold period ending on November 16, 2021 in accordance with applicable securities laws.
OPTION GRANT
The Company has granted a total of 960,000 stock options to directors, employees, and consultants of the Company in accordance with the Company’s stock option plan. Each option is exercisable into one common share of the Company at a price of $0.70 per share. The options vested on grant and will expire on July 15, 2026. The stock options are subject to the acceptance of the Canadian Securities Exchange (CSE).
About Crescat Capital LLC
Crescat is a global macro asset management firm headquartered in Denver, Colorado. Crescat’s mission is to grow and protect wealth over the long term by deploying tactical investment themes based on proprietary value-driven equity and macro models. Crescat’s goal is industry leading absolute and risk-adjusted returns over complete business cycles with low correlation to common benchmarks. Crescat’s investment process involves a mix of asset classes and strategies to assist with each client’s unique needs and objectives and includes Global Macro, Long/Short, Large Cap and Precious Metals funds.
Crescat is advised by its technical consultant Dr. Quinton Hennigh on investments in gold and silver resource companies. Dr. Hennigh became an economic geologist after obtaining his PhD in Geology/Geochemistry from the Colorado School of Mines. He has more than 30 years of exploration experience with major gold mining firms that include Homestake Mining, Newcrest Mining and Newmont Mining. Recently, Dr. Hennigh founded Novo Resources Corp (TSXV: NVO) and serving as Chairman. Among his notable project involvements are First Mining Gold’s Springpole gold deposit in Ontario, Kirkland Lake Gold’s acquisition of the Fosterville gold mine in Australia, the Rattlesnake Hills gold deposit in Wyoming, and Lion One’s Tuvatu gold project on Fiji, among many others.
For further information, please contact:
Rana Vig
President and Chief Executive Officer Telephone: 604-218-4766
Email: rana@ranavig.com