Blue Lagoon Resources Inc C.BLLG

Blue Lagoon $5.7M PP led by Investment from Crescat Capital

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BLUE LAGOON COMPLETES $5.7 MILLION PRIVATE PLACEMENT LED BY A SECOND STRATEGIC  INVESTMENT BY CRESCAT CAPITAL

 
March 22, 2022 – Vancouver, British Columbia – Blue Lagoon Resources Inc. (the “Company”) (CSE: BLLG; FSE: 7BL; OTCQB: BLAGF) is pleased to announce that the Company has closed a non-brokered flow through financing for proceeds of $5,746,983.84. The strategic investment by Crescat Capital LLC (“Crescat”) provided for more than 18% of the total financing. In addition, Crescat continues to maintain its previously secured participation rights that provide for an option to participate in all future financings.
 
“It’s very reassuring to receive a second investment from sophisticated investors like Crescat who recognize the potential of Dome Mountain for not only the near term production opportunity and the clear potential to significantly increase the known resource on the Boulder Vein, but also for the potential of an Alkali gold system with well defined targets already drilled and ready for advancement as well as  multiple targets ready for drill testing in 2022.” said Rana Vig, President & CEO of Blue Lagoon Resources. “With this new capital raise, an existing healthy treasury, no debt, and over $4 million in-the-money warrants, the Company is well funded and well situated to execute on its exploration plans in 2022." he added.
 
World renowned geologist, Dr. Quinton Hennigh, Crescat Capital’s strategic technical advisor commented, “looking at dozens upon dozens of companies every month, we believe we identified the opportunity in Blue Lagoon early and are pleased to add to our investment in the company and are excited about the recent drilling results released by Blue Lagoon and continue to believe in the significant potential of the Dome Mountain project. With this new funding, Blue Lagoon is well situated to execute on its aggressive 20,000 meter drill program, one that could see Dome Mountain well on its way to becoming a world class deposit,” he said.
 
FINANCING DETAILS
The private placement (the “Private Placement”) consisted of 7,367,928 flow-through units (“FT Units”) at a price of $0.78 per Unit, for aggregate gross proceeds to the Company of $5,746,983.84. Each of the FT 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 either $0.78 or $0.90 per share until April 15, 2024. Proceeds from the sale of the FT Units will be used for exploration activities in accordance with flow-through tax rules.
 
The Company paid finders’ fees in cash in the aggregate amount of $234,720 from the sale of FT Units to certain third parties sourced by the finders and issued an aggregate of 300,923 finders’ warrants to purchase that number of common shares of the Company. 224,000 of the finder’s warrants may be exercised to acquire common shares of the Company at a price of $0.78 per common share until April 15, 2024 and 76,923 finder’s warrants are exercisable at a price of $0.90 per common share until March 22, 2024.
 
The securities issued pursuant to the Private Placement are subject to a statutory four month hold period ending on July 23, 2022 in accordance with applicable securities laws.
 
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 in Fiji, among many others.
 
For further information, please contact:
 
Rana Vig
President and Chief Executive Officer
 
604-218 4766
[e-mail]