Financing closed - insider participation for a chunk
Cheers
Baru Gold Completes Second and Final Tranche of Private Placement
(TheNewswire)
Vancouver, BC – TheNewswire – April 25, 2024 - Baru Gold Corp (TSXV:BARU) | (OTC:BARUF) (the “Company” or “Baru”) announces that it has completed its second and final tranche of its private placement for an aggregate of $89,129, issuing 4,456,450 Units previously announced on March 13, 2024 and March 26, 2024. The Company has raised a total of $156,129 and issued 7,806,450 units from both tranches. Each unit will be comprised of one common share in the capital of the Company (a “Share”) and one non-transferable common share purchase warrant (a “Warrant”). Each Warrant shall be exercisable for one Share for 2 years from the date such Warrant is issued at an exercise price of $0.05.
The proceeds raised from the Private Placement will be used for legal fees related to the processing of the upgrade of its Sangihe Gold Project to production operation status and working capital. No finder’s fees were paid in connection with this issue.
In connection with both tranches, an Insider of the Company has participated in the foregoing offering which constitutes a "related party transaction" as defined under Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions (“MI 61-101”). Such participation is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as neither the fair market value of the securities acquired by the insiders, nor the consideration for the securities paid by such insiders, exceed 25% of the Company's market capitalization. The Insider has subscribed for an aggregate of 2,000,000 common shares and as a result the Insider holds less than five percent (5%) of the current issued and outstanding common shares.
The Private Placement is subject to final Exchange approval. All securities issued in the Private Placement will be subject to a four-month hold period expiring August 24, 2024.
The Company further announces that it has paid a finder’s fee of $840 in cash commission and granted 42,000 finder warrants equal to 6.0% of the gross subscription proceeds raised in Tranche 1 to one finder in accordance with the policies of the TSX Venture Exchange. The finder warrants shall be exercisable for one Share for 2 years from the date such Warrant is issued at an exercise price of $0.05.
This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful. The securities have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.