TSX Venture Exchange (TSX-V): GRG
Frankfurt Stock Exchange (FSE): G6A
OTCQB Venture
Market (OTCQB): GARWF
VANCOUVER, June 19, 2019 /CNW/ - Golden Arrow
Resources Corporation (TSX-V: GRG, FSE: G6A, OTCQB:
GARWF), ("Golden
Arrow" or the "Company") is pleased to announce
it has closed the first tranche of a non-brokered private placement
(the "Private Placement") through the issuance of 4,062,500
units ("Units") at a subscription price of $0.20 per Unit for aggregate gross proceeds to
the Company of $812,500. In addition,
due to continued strong demand, the Company has increased the Unit
offering to up to C$1 million in
aggregate gross proceeds. All other terms of the financing will
remain the same.
As disclosed in the Company's news release of June 18, 2019, the Units will be sold at a price
of $0.20 per Unit. Each unit will
consist of one common share and one transferrable common share
purchase warrant. Each warrant will entitle the holder thereof to
purchase one additional common share in the capital of the Company
at $0.30 per share for three years
from the date of issue.
Finder's fees of $30,100 are
payable in cash on a portion of the private placement to parties at
arm's length to the Company. In addition, 150,500
non-transferable finder's warrants are being issued (the
"Finder's Warrants"). Each Finder's Warrant entitles
a finder to purchase one common share at a price of $0.30 per share for three years from the date of
issue, expiring on June 19,
2022.
The proceeds of the financing will be used for general working
capital.
Certain insiders of the Company participated in the first
tranche of the Private Placement for $22,500 in Units. Such participation represents a
related-party transaction under Multilateral Instrument 61-101 -
Protection of Minority Security Holders in Special Transactions
("MI 61-101"), but the transaction is exempt from the formal
valuation and minority shareholder approval requirements of MI
61-101 as neither the fair market value of the subject matter of
the transaction, nor the consideration paid, exceed 25% of the
Company's market capitalization.
This financing is subject to regulatory approval and all
securities to be issued pursuant to the financing are subject to a
four-month hold period expiring on October
19, 2019.
About Golden Arrow:
Golden Arrow Resources Corporation is an exploration company
earning production income. The Company has a successful track
record of creating value by making precious and base metal
discoveries and advancing them into exceptional deposits.
Golden Arrow owns a 25% share of
Puna Operations Inc., a joint venture operated by SSR Mining, with
more than 8 years of forecast production and upside potential at
the Chinchillas Silver Mine. Golden Arrow is actively exploring a new
portfolio of advanced projects in Chile, as well as other targets within its
portfolio of more than 200,000 hectares of properties in
Argentina. The Company is a member of the Grosso
Group, a resource management group that has pioneered exploration
in Argentina since 1993.
ON BEHALF OF THE BOARD
"Joseph Grosso"
_______________________________
Joseph Grosso,
Executive Chairman, President and CEO
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
This news release may contain forward-looking
statements. Forward-looking statements address future events
and conditions and therefore involve inherent risks and
uncertainties. Actual results may differ materially from those
currently anticipated in such statements. Readers are encouraged to
refer to the Company's public disclosure documents for a more
detailed discussion of factors that may impact expected future
results. The Company undertakes no obligation to publicly update or
revise any forward-looking statements.
The securities being offered have not been, nor will they be
registered under the United States Securities Act of 1933, as
amended, or state securities laws and may not be offered or sold
within the United States or to, or
for the account or benefit of, U.S. persons absent U.S. federal and
state registration or an applicable exemption from the U.S.
registration requirements. This release does not constitute an
offer for sale of securities in the
United States.
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SOURCE Golden Arrow Resources Corporation