Second NR from March 12, 2019, in case you missed it. NEWS RELEASES
Goldsource Mines Announces Upsize of Previously Announced Brokered Private Placement
VANCOUVER, BC – March 12, 2019 – Goldsource Mines Inc. (“Goldsource” or the “Company”) is pleased to announce that it has entered into an amended agreement with PI Financial Corp. as lead agent on behalf of a syndicate of agents (collectively, the “Agents”) to increase the size of the previously announced brokered private placement to Cdn$6.5 million (the “Offering”).
Under the terms of the Offering, the Company has agreed to issue up to 54,200,000 units of the Company (the “Units”) at a price of Cdn$0.12 per Unit. Each Unit will consist of one common share of Goldsource and onehalf of one common share purchase warrant of Goldsource (each whole warrant, a “Warrant”). Each Warrant will be exercisable to acquire one common share of Goldsource at a price of Cdn$0.20 for 24 months from the closing of the Offering.
In addition, Goldsource has granted the Agents an option (the “Agents’ Option”), exercisable, in whole or in part, up to two days prior to the closing of the Offering to increase the size of the Offering by up to 15%. If the Agents’ Option is exercised in full, the aggregate gross proceeds of the Offering will be Cdn$7,479,600.
The Company intends to use the proceeds from this Offering to; drill-test extensions of the recent high-grade Salbora discovery at its Eagle Mountain Gold Project in Guyana, complete an updated resource, continue its Pre-Feasibility Study inclusive of the Salbora discovery, and for general corporate purposes.
The Company will pay a commission to the Agents of 6% of the gross proceeds of the Offering (including from any exercise of the Agents’ Option). The Company has also agreed to issue to the Agents nontransferable compensation options (“Compensation Options”) equal in number to 6% of the aggregate number of Units sold under the Offering (including from any exercise of the Agents’ Option). Each Compensation Option will be exercisable to acquire one Common Share at an exercise price of Cdn$0.12 per share for 24 months following the closing of the Offering.
The Offering is scheduled to close on or about April 10, 2019 and is subject to regulatory approval. Resale of the securities distributed in connection with the Offering will be subject to a hold period of four months and one day following the closing date of the Offering.