Mr. David Greenway reports
BAM BAM RESOURCES CLOSES PRIVATE PLACEMENT
Bam Bam Resources Corp. has closed an oversubscribed non-brokered private placement financing for total gross proceeds of $1,975,000.
The Company has allotted and issued 9,875,000 units (the "Units") at a price of $0.20 per Unit. Each Unit is comprised of one common share and one transferable warrant ("Warrant"). Each Warrant will entitle the holder to purchase one additional common share for a period of thirty-six (36) months at a price of $0.25 per share, subject to accelerated expiry.
In the event that the Company's common shares trade at a closing price at or greater than $0.50 per share for a period of 10 consecutive trading days, the Company may accelerate the expiry date of the warrants by giving notice to the holders thereof, and in such case, the warrants will expire on the 30th day after the date on which such notice is given by the Company.
In relation to the Private Placement, the Company has paid finder's fees of $7,200 and issued 36,000 finder's warrants to an arm's-length party, with each finder's warrant exercisable into a common share at a price of $0.25 per share, subject to the same accelerated expiry as above.
The Company will use the proceeds from the Private Placement towards exploring its Majuba Hill Property and general working capital. All securities issued are subject to a four-month-and-one-day hold period expiring on January 15, 2021.