Volcanic again Do I hear 5 million!
Volcanic Gold increases placement to $5-million
2020-06-25 07:12 ET - News Release
Mr. Charles Straw reports
VOLCANIC INCREASES PROPOSED PRIVATE PLACEMENT TO $5.0 MILLION; SILVERCORP METALS TO ACQUIRE 19.9% OF VOLCANIC
Further to its news release of June 4, 2020, Volcanic Gold Mines Inc.'s proposed non-brokered private placement has been increased from $3.0-million to $5.0-million. The Private Placement will now consist of 20,000,000 units ("Units") of Volcanic at a price of $0.25 per Unit for total proceeds of $5.0 million.
Volcanic is also pleased to announce that Silvercorp Metals Inc. ("Silvercorp") has indicated its intent to participate in the Private Placement by subscribing for approximately 5.69 million of the Units at a purchase price of approximately $1.42 million. On closing of the Private Placement, Silvercorp will, subject to stock exchange approval, own 19.9% of the issued and outstanding common shares of Volcanic. Silvercorp will be entitled to appoint one director to the board of directors of the Company and have the right to participate in future equity financings to maintain its pro rata interest in the outstanding common shares of the Company.
Each Unit will consist of one common share and one-half of one common share purchase warrant. Each whole warrant will entitle the holder to purchase one common share at a price of $0.30 for a term of 24 months following closing of the Private Placement.
The Company may pay a finder's fee on all or a portion of the Private Placement. The proceeds of the Private Placement are intended to be used for general working capital purposes and to fund exploration work on Volcanic's optioned properties in Guatemala. The Private Placement is subject to approval by the TSX Venture Exchange. All securities issued pursuant to the Private Placement will be subject to the applicable statutory four-month hold period.
About Volcanic
Volcanic brings together an experienced and successful mining, exploration and capital markets team focused on building multi-million ounce gold and silver resources in underexplored countries. Through the strategic acquisition of mineral properties with demonstrated potential for hosting gold and silver resources, and by undertaking effective exploration and drill programs, Volcanic intends to become a leading gold-silver company.
We seek Safe Harbor.
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