New attempt P.P. for $ 500K this time. Shares-for-debt deals, $500K financing
2015-12-02 18:41 ET - News Release
Mr. Larry Nagy reports
DAMARA ANNOUNCES NON-BROKERED FINANCING FOR UP TO $500,000
Subject to TSX Venture Exchange approval, Damara Gold Corp. is undertaking a non-brokered private placement of up to 10 million units in the capital of the company at an issue price of five cents per unit, for gross proceeds of up to $500,000. Each unit will consist of one common share in the capital of the company and one common share purchase warrant, with each warrant entitling the holder thereof to acquire an additional common share at an exercise price of 15 cents for 60 months after the date of issuance. The warrant terms will contain an acceleration provision such that if, commencing on the date that is four months after the closing date, the closing price of the common shares on the exchange is higher than 25 cents for 20 consecutive trading days, then on the 20th consecutive trading day, the expiry date of the warrants may be accelerated to the date that is 30 days after this acceleration trigger date by the issuance of a news release announcing such accelerated expiry date.
All of the units issued in connection with the offering and common shares issued on exercise of the warrants will be subject to a restricted resale period that expires four months after the closing date. The company may pay finders' fees in accordance with the rules and policies of the exchange. The offering remains subject to the approval of the exchange. The proceeds will be used by the company for its Namibian property interest and general corporate purposes.
Shares for debt
Furthermore, the company wishes to advise it has agreed to settle short-term loans and advances with arm's-length parties of up to a total of $220,694 by the issuance of up to a total of 4,413,880 units of the company at a deemed issue price of five cents per unit. Each unit will consist of one common share and one common share purchase warrant. Each warrant will have the same terms as the warrants described above.
Additionally, a total of approximately $213,564 of additional debt owed to directors of the company will be settled by the issuance of approximately 4,271,274 common shares at a deemed issue price of five cents per share.
The debt involved in the debt settlement was incurred to provide the company with working capital over the last 12 months.
The securities issued pursuant to the debt settlement will be subject to a four-month hold period from the date of issuance. Completion of the debt settlement is subject to acceptance by the exchange.
We seek Safe Harbor.