SPROTT IS IN DEEP HERE PLUS SMALL FLOAT Golden Spike Resources Corp., further to its news release on Nov. 30, 2023, has closed a private placement financing and issued 3.95 million units at eight cents per unit for gross proceeds of $316,000. Each Unit consists of one common share and one-half of one warrant. Each whole transferable warrant (a "Warrant") is exercisable at $0.10 per common share until December 5, 2025 (the "Private Placement").
The Company paid finder's fees consisting of $4,800 cash and 60,000 non-transferable warrants. Each finder's warrant is exercisable at $0.10 per common share until December 5, 2025, on a portion of the Private Placement in accordance with the policies of the Canadian Securities Exchange.
Eric Sprott, through 2176423 Ontario Ltd., a corporation beneficially owned by him, acquired 2,500,000 Units pursuant to the Private Placement for total consideration of $200,000. Prior to the Private Placement, Mr. Sprott beneficially owned or controlled 1,000,000 common shares of the Company representing approximately 2.8 % of the outstanding common shares of the Company on a non diluted basis.
As a result of the Private Placement, Mr. Sprott now beneficially owns or controls 3,500,000 common shares and 1,250,000 common share purchase warrants of the Company representing approximately 8.7% on a non-diluted basis and 12.0% on a fully diluted basis assuming the exercise of such Warrants.
The securities are held for investment purposes. Mr. Sprott has a long-term view of the investment and may acquire additional securities including on the open market or through private acquisitions or sell the securities including on the open market or through private dispositions in the future depending on market conditions, reformulation of plans and/or other relevant factors.
A copy of the early warning report with respect to the foregoing will appear on Golden Spikes's profile on SEDAR+ and may also be obtained by calling Mr. Sprott's office at (416) 945-3294 (2176423 Ontario Ltd., 7 King Street East, Suite 1106, Toronto Ontario M5C 3C5).