GOG Completes PP, Eric Sprott Maintains Pro-Rata Ownership TORONTO, Feb. 28, 2022 (GLOBE NEWSWIRE) -- Golden Tag Resources Ltd. (“Golden Tag” or the "Company") (TSX.V: GOG) is pleased to announce that further to the news release dated February 8, 2022, it has completed the second and final tranche (the “Final Tranche”) of the non-brokered private placement previously announced on January 20, 2022 (the “Offering”). In connection with the Final Tranche, the Company issued an aggregate of 5,833,330 Units at a price of $0.25 per Unit for aggregate gross proceeds of $1,458,332.50.
Collectively between the first and Final Tranche, the Company issued an aggregate of 13,000,000 Units for gross proceeds of $3,250,000. Eric Sprott, through 2176423 Ontario Ltd., a corporation which is beneficially owned by him acquired an aggregate of 4,000,000 Units.
The Offering
Each Unit consists of one common share (“Common Share”) and one-half of one common share purchase warrant (each, a “Warrant”). Each whole Warrant issued pursuant to the Final Tranche entitles the holder thereof to acquire one Common Share at a price of C$0.40 until February 28, 2024. The Warrants contain an acceleration provision whereby if the closing price of the Common Shares on the Exchange is $0.70 or more for 10 consecutive trading days the Company will have the right to accelerate the expiry date of the Warrants (the “Acceleration Provision”).
In connection with the Final Tranche, the Company paid aggregate cash finder’s fees of $7,000 and issued 28,000 finder’s warrants (each, a “Finder’s Warrant”). Each Finder’s Warrant entitles the holder to purchase one Share at a price of $0.25 for a period of 24 months months following closing of the Final Tranche, subject to the Acceleration Provision.
All Common Shares issued and issuable in connection with the Final Tranche are subject to a statutory hold period of four month and one day. The Company intends to use the net proceeds of the Offering to fund advancement of the Company’s 100% owned San Diego Project, in Durango Mexico, and for working capital and general corporate purposes.
The Offering remains subject to TSX Venture Exchange (the “TSXV”) final acceptance.
Mr. Sprott is an insider and control person of the Company and as such, his participation in connection with the Private Placement is a related-party transaction under the policies of the TSXV and Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions (“MI 61-101”). The Company is relying on exemptions from the minority shareholder approval and formal valuation requirements applicable to the 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 shares purchased on behalf of Mr. Sprott nor the consideration paid by him exceeds 25% of the Company's market capitalization. The Company did not file a material change report in respect of the related-party transaction at least 21 days prior to the closing of the Private Placement, which the Company deems reasonable in the circumstances so as to be able to avail itself of the proceeds of the Private Placement in an expeditious manner. On September 17, 2021, disinterested shareholders of the Company approved the potential creation of Eric Sprott as a Control Person (as the term is defined by the TSXV Policy 1.1) of the Company.
About Golden Tag Resources
Golden Tag Resources Ltd. is a junior exploration company exploring for high-grade silver deposits. The Company holds a 100% interest, subject to a 2% NSR, in the San Diego property in Durango State, Mexico. The San Diego property is located within the prolific Velardea Mining District, the site of several mines having produced silver, zinc, lead, and gold over the past century. For more information regarding the San Diego property please visit our website at www.goldentag.ca.
For additional information, please contact:
Greg McKenzie, President & CEO
Ph: 416-504-2024
greg.mckenzie@goldentag.ca
www.goldentag.ca