Goldcore Resources closes $1.5-million financing Goldcore Resources closes $1.5-million financing
2021-01-13 20:11 ET - News Release
Mr. Thomas Yingling reports
GOLDCORE RESOURCES LTD. - PRIVATE PLACEMENT CLOSES TO RAISE $1,500,000 FULLY SUBSCRIBED ($1,500,000 HARD DOLLARS)
Goldcore Resources Ltd. has closed its private placement in two tranches to raise total proceeds of $1.5-million. A total of 15 million units have been subscribed for at a price of 10 cents per unit, each unit consisting of one common share and one warrant exercisable for two years at 20 cents. The term of the warrants issued may be accelerated by the company in the event that the company's shares trade at or above 25 cents for a period of 10 consecutive days. In such case of accelerated warrants, the company may give notice, in writing or by way of a news release, to the holders that the warrants will expire 30 days from the date of providing such notice. Under the first tranche, 11,083,000 units ($1,108,300) were issued Dec. 15, 2020, with a hold period expiring April 16, 2021. Under the second tranche, 3,917,000 units ($391,700) have been issued and are subject to a four-month-plus-one-day hold period expiring May 14, 2021.
Insiders participated in the first tranche of the private placement as to 900,000 units ($90,000). This participation constitutes a related party transaction within the meaning of Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions, however, it is exempt from the valuation and minority shareholder approval requirements of MI 61-101 by virtue of the exemptions contained in sections 5.5(a) and 5.7(a) of MI 61-101, in that the fair market value of the shares purchased by the insiders does not exceed 25 per cent of the company's market capitalization and the company's shares are listed on the TSX Venture Exchange.
The company has paid cash commissions of $25,200, issued 136,000 compensation shares and 116,000 finder warrants all in the first tranche, and has agreed to pay cash commission of $13,776 and 137,760 finder warrants in the second tranche.
Proceeds of the private placement will be used for working capital and continued exploration on the company's properties.
We seek Safe Harbor.
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