news Golden Ridge Resources Completes $1,450,000 Financing
(via TheNewswire)
July 8, 2021 – TheNewswire - GOLDEN RIDGE RESOURCES LTD. (TSXV:GLDN) ("Golden Ridge" or the "Company") has completed the previously announced financing (see new release of June 25, 2021) wherein the Company has issued today 5,370,370 units (the “Units”) at a price of $0.27 for gross proceeds of $1,450,000 (the “Offering”).
Each Unit consists of one common share and one-half of one common share purchase warrant (each whole warrant at “Warrant”) of Company. Each Warrant entitles the subscriber to purchase one additional common share for at an exercise price of $0.50 per common share until July 8, 2023.
Mr. Eric Sprott, through 2176423 Ontario Ltd., a corporation that is beneficially owned by him, acquired 5,000,000 Units for total consideration of $1,350,000. Prior to the Offering Mr. Sprott beneficially owned or controlled 6,000,000 common shares and 3,000,000 warrants of the Company. As a result of the current Offering, Mr. Sprott beneficially owns or controls 11,000,000 common shares of the Company and 5,500,000 warrants collectively (the “Sprott Warrants”), representing approximately 19.6% of the issued and outstanding common shares of the Company on a non-diluted basis and approximately 26.8% of the issued and outstanding common shares of the Company on a partially diluted basis, assuming the exercise of the Sprott Warrants.
The Units were acquired by Mr. Sprott for investment purposes. Mr. Sprott has a long-term view of the investment and may acquire additional securities of Golden Ridge, including on the open market or through private acquisitions, or sell securities of the company, including on the open market or through private dispositions in the future, depending on market conditions, reformulation of plans and/or other factors that Mr. Sprott considers relevant from time to time.
A copy of Mr. Sprott's early-warning report will be filed under Golden Ridge’s profile on SEDAR and may also be obtained by calling Mr. Sprott's office at 416-945-3294 (200 Bay St., Suite 2600, Royal Bank Plaza, South Tower, Toronto, Ontario M5J 2J1).
Mr. Sprott has provided an undertaking not to exercise the Sprott Warrants (if doing so would result in his non-diluted ownership interest exceeding 20%) until the Company has obtained such shareholder approval at the Company’s next annual general meeting to be held on or before December 18, 2021.
Mr. Sprott is an insider of the Company and as such his participation in the Offering is considered a related party transaction under Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions (“MI 61-101”) and TSX Venture Exchange Policy 5.9 (which incorporates by reference MI61-101). The Company is relying on exemptions from the minority shareholder approval and formalvaluation requirements applicable to related party transactions under sections 5.5(a) and 5.7(1)(a),respectively, of MI 61-101, as neither the fair market value of the Units to be purchased on behalf of Mr.Sprott nor the consideration to be paid by him exceeds 25% of the Company's market capitalization.
Proceeds raised from the Offering will be used for general working capital and to further the Company’s Newfoundland project portfolio.
All securities issued pursuant to the Offering will be subject to a statutory four month and one day hold period under applicable securities laws expiring on November 9, 2021.
None of the securities sold in connection with the Offering will be registered under the United States Securities Act of 1933, as amended, and no such securities may be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. 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 jurisdiction in which such offer, solicitation or sale would be unlawful.
About Golden Ridge
Golden Ridge is a TSX-V listed exploration company engaged in acquiring and advancing mineral properties located in Newfoundland and British Columbia. Golden Ridge is currently focused on exploration and development of its portfolio of exploration assets in Newfoundland. The company owns a 100% interest in the 1,700-hectare Hank copper-gold-silver-lead-zinc property and the 3,000 hectare Hickman copper-gold property located in the Golden Triangle district, approximately 140 kilometres north of Stewart, British Columbia and has a portfolio of exploration projects in Newfoundland.
ON BEHALF OF THE BOARD OF DIRECTORS OF
GOLDEN RIDGE RESOURCES LTD.
“Mike Blady”
Mike Blady
President and Chief Executive Officer
For more information regarding this news release, please contact:
Mike Blady, CEO and Director
T: 250-717.3151
W: www.goldenridgeresources.com
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