VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 9, 2011) - Spanish Mountain Gold Ltd. ("the Company") (TSX VENTURE:SPA) is pleased to announce that it has closed its private placement offering (the "Offering"), previously announced on February 17, 2011. Pursuant to the Offering, a total of 6,410,257 common shares of the Company (the "FT Shares") were issued on a "flow-through" basis at a price of
.78 per FT Share for gross proceeds of $5,000,000.
The proceeds of the private placement will be used to fund programs on the Company's mineral properties in British Columbia, Canada. The Company has received final acceptance from the TSX Venture Exchange in connection with the Offering.
Pursuant to transactions which occurred subsequent to the closing of the Offering, Mr. Ian Watson, a director of the Company, acquired 1,142,857 of the FT Shares for approximately $600,000, representing approximately 17.83% of the Offering and 0.88% of the current issued and outstanding common shares of the Company (the "Shares"). Mr. Watson now owns, directly and indirectly, a total of 13,454,497 Shares and also holds stock options to acquire up to 300,000 Shares and share purchase warrants to acquire up to 10,403,640 Shares (together, the "Convertible Securities"). Mr. Watson's current shareholding represents approximately 10.31% of outstanding Shares (on a non-diluted basis). Should Mr. Watson also exercise his Convertible Securities, he will own 17.10% of the outstanding Shares on a partially diluted basis (i.e., assuming no other convertible securities are exercised).
The Company has paid total cash finder's fee of $128,076.93 pursuant to the Offering. All of the securities issued under the Offering are subject to hold period which will expire on July 9, 2011 in accordance with applicable Canadian securities laws.