Sage Gold closes third tranche of private placement
2018-01-26 17:10 ET - News Release
Mr. Nigel Lees reports
SAGE GOLD CLOSES OVERSUBSCRIBED PRIVATE PLACEMENT
Sage Gold Inc., further to its news releases dated Jan. 5, 2018, Jan. 15, 2018, and Jan. 18, 2018, has completed the third tranche of a treasury offering of units of the company at the price of 11 cents per unit. Each unit consists of one common share of the company and one common share purchase warrant. Each warrant entitles its holder to purchase one common share at an exercise price of 16 cents for a period of 24 months following the closing of the offering. The third tranche of the offering consisted of the sale of 7,298,909 units for gross proceeds of $802,879.99. As a result of the interest in the issue, the offering was oversubscribed, and the company has increased the issue size to $2.5-million on the same terms.
In connection with the closing of the third tranche, finders' fees of $32,638.40 were paid and 185,446 compensation warrants were issued to certain eligible finders. Each finder warrant entitles the holder to acquire one common share at the exercise price of 16 cents per common share for 24 months following the closing of the third tranche.
Securities issued pursuant to the third tranche are subject to a four-month-plus-one-day hold period commencing on the day of the closing of the third tranche under applicable Canadian securities laws. The offering is subject to final acceptance of the TSX Venture Exchange. To date, the offering, comprising the first tranche closed on Jan. 15, 2018, the second tranche closed on Jan. 18, 2018, and the third tranche, consists of the sale of 17,264,953 units in the aggregate for gross proceeds of $1,899,074.86. Following the completion of the second tranche, 103,496,473 common shares will be issued and outstanding. The company intends to use the net proceeds from the offering for mine development and general working capital purposes.
About Sage Gold Inc.
The company is a mineral exploration and development company which has primary interests in near-term production and exploration properties in Ontario. Its main properties are the Clavos gold property, 100 per cent owned, in Timmins and the 100-per-cent-owned Onaman property, and other exploration properties in the Beardmore-Geraldton gold camp.
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