Sage Gold closes $430,620 final tranche of financing
Sage Gold closes $430,620 final tranche of financing
2018-02-16 15:46 ET - News Release
Mr. Nigel Lees reports
SAGE GOLD CLOSES PRIVATE PLACEMENT
Further to its news releases dated Jan. 9, 2018, Jan. 15, 2018, Jan. 18, 2018, and Jan. 26, 2018, Sage Gold Inc. has completed the fourth and final tranche of a treasury offering of units of the company at the price of 11 cents per unit. Each unit consists of one common share of the company and one common share purchase warrant. Each warrant entitles its holder to purchase one common share at an exercise price of 16 cents for a period of 24 months following the closing of the offering. The fourth tranche of the offering consisted of the sale of 3,914,726 units for gross proceeds of $430,620.01.
In connection with the closing of the fourth tranche, no finders' fees were paid and no compensation warrants were issued. Securities issued pursuant to the fourth tranche are subject to a four-month-plus-one-day hold period commencing on the day of the closing of the fourth tranche under applicable Canadian securities laws. The offering is subject to final acceptance of the TSX Venture Exchange. To date, the offering, comprising the first tranche closed on Jan. 15, 2018, the second tranche closed on Jan. 18, 2018, the third tranche closed on Jan. 26, 2018, and the fourth tranche, consists of the sale of 21,179,679 units in the aggregate for gross proceeds of $2,329,694.87. Following the completion of the fourth tranche, 107,411,199 common shares will be issued and outstanding. The company intends to use the net proceeds from the offering for mine development and general working capital purposes.
In connection with the closing of the fourth tranche, Chancery Asset Management Pte. Ltd., a corporation controlled by Thomas Puppendahl, a director of the company, acquired 325,454 units, thereby making the offering a related party transaction as defined under Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions. The company relies on exemptions from the formal valuation and minority shareholder approval requirements of MI 61-101, on the basis that the securities of the company are not listed for trading on an enumerated market (as set out in Section 5.5(b) of MI61-101) and that neither the fair market value of the shares issued to nor the consideration paid by Chancery Asset Management for the securities acquired pursuant to the offering exceeded 25 per cent of the company's market capitalization. No new insiders were created nor has any change of control occurred as a result of the offering.
About Sage Gold Inc.
The company is a mineral exploration and development company that has primary interests in near-term production and exploration properties in Ontario. Its main properties are the Clavos gold property (100 per cent owned) in Timmins and the 100-per-cent-owned Onaman property and other exploration properties in the Beardmore-Geraldton gold camp.
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