Sanatana closes $310,500 second tranche of financing
2022-06-02 12:47 ET - News Release
Mr. Peter Miles reports
SANATANA COMMENCES 2022 EXPLORATION PROGRAM AND CLOSES SECOND TRANCHE OF PRIVATE PLACEMENT
Sanatana Resources Inc., further to its news releases of April 22, 2022, and May 12, 2022, has closed the second tranche of its non-brokered private placement. The second tranche consisted of 2.07 million units of the company at a price of 15 cents per unit for gross aggregate proceeds of $310,500.
Peter Miles, Sanatana's chief executive officer, commented: "We are mobilizing to Bell 2 Lodge today in preparation for our upcoming 2022 exploration and drilling program. Exploration, including geophysics, will begin shortly and drilling is expected to begin around July 1, 2022. With the second tranche closing, we will have approximately $4.2-million in cash and prepaid exploration expenses on hand as we begin our 2022 field season. We look forward to commencing our initial drill program at Oweegee."
Each unit issued in the second tranche consisted of one common share of the company and one-half of one common share purchase warrant, with each warrant entitling the holder thereof to acquire one common share of the company at a price of 20 cents for a period of two years following the closing of the second tranche of the private placement.
Buddy Doyle and Ian Smith, insiders of the company, subscribed for 150,000 units ($22,500) and 330,000 units ($49,500), respectively, under the private placement. The insider subscriptions constitute related party transactions within the meaning of Multilateral Instrument 61-101 -- Protection of Minority Securityholders in Special Transactions. The company has relied on the exemptions from the formal valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(a) and 5.7(1)(a), respectively, of MI 61-101 in respect of the insider subscriptions.
In connection with the private placement, the company paid aggregate cash finder's fees totalling $13,410 and issued 89,400 finder's warrants to a certain qualified arm's-length finder. Each finder's warrant is exercisable into one common share at an exercise price of 20 cents per finder's warrant share on or before June 1, 2024.
All securities issued pursuant to the private placement are subject to a statutory hold period expiring on Oct. 2, 2022, in accordance with applicable securities legislation. The proceeds of the private placement will be used to finance the upcoming drilling and exploration of the Oweegee Dome project and for general working capital.