Golden Predator Completes $9.3 Million Private Placement
July 25 2019 - 8:00AM
Golden Predator Mining Corp. (TSX.V:GPY,
OTCQX:NTGSF) (the “
Company”) is pleased
to announce that it has completed its previously announced private
placement and issued 11,600,000 charity flow-through Class A common
shares at a price of $0.45 per share, 7,000,000 traditional
flow-through Class A common shares at a price of $0.38 per share,
and 4,500,000 non-flow-through Class A common shares at a price of
$0.32 per share for aggregate gross proceeds of $9.32
million.
The Company engaged Canaccord Genuity Corp.,
Clarus Securities Inc. and Power One Capital Markets Limited as
financial advisors in connection with the private placement.
The Company paid an aggregate of $492,452 in finder’s fees and
issued 52,632 Class A common shares and 427,140 warrants to
finders. 102,840 of these finder’s warrants are exercisable
into one Class A common share at an exercise price of $0.38 per
share and 324,300 of these finder’s warrants are exercisable into
one Class A common share at an exercise price of $0.32 per share,
all of which may be exercised for a period of two years from the
date of issuance.
The proceeds of the private placement will be
applied to the Company’s Brewery Creek and 3 Aces projects and
general working capital. The securities issued under the
private placement are subject to a statutory hold period expiring
on November 25, 2019.
Eric Sprott acquired 5,000,000 non-flow-through
Class A common shares sold through the offering and increased his
total ownership to 13 million Class A common shares of the Company.
William Sheriff, Executive Chairman and a director of the Company,
participated in the private placement and purchased 7,895
traditional flow-through Class A common shares and 133,750
non-flow-through Class A common shares of the Company. The
participation by Mr. Sheriff is considered to be a “related party
transaction” as defined under TSX Venture Exchange Policy 5.9 and
Multilateral Instrument 61-101 Protection of Minority Security
Holders in Special Transactions (“MI 61-101”). The
Company is relying on the exemptions from the formal valuation and
minority approval requirements contained in Sections 5.5(a) and
5.7(1)(a) of MI 61-101, on the basis that the fair market value of
the transaction does not exceed 25% of the Company’s market
capitalization.
The material change report to be filed in
connection with the offering will be filed less than 21 days prior
to the closing of the private placement. The shorter period was
necessary in order to permit the Company to close the private
placement in a timeframe consistent with usual market practice for
transactions of this nature.
Golden Predator Mining Corp.
Golden Predator is advancing the past-producing
Brewery Creek Gold Mine towards a timely resumption of mining
activities, under its valid Quartz Mining and Water Licenses, in
Canada’s Yukon. With established resources grading more than 1.0
g/t Gold and low capex to production in a safe first world
jurisdiction, the turnkey Brewery Creek Mine has a clear path to
production as an economically and environmentally proven project.
Optimization studies are progressing to enhance the already
positive multi-phase project economics described in the 2014
Preliminary Economic Assessment(1). Drilling continues to expand
the numerous open ended resources and untested targets across the
186 km2 brownfield property. At 3 Aces, Golden Predator continues
to expand on discoveries of native gold in quartz veins while
ongoing bulk sampling and processing at our 50 tpd Company-owned
processing plant has demonstrated gold recoveries of over 85% using
a chemical-free process. This green gold provides the gold for the
mintage of .9999 gold coins from the Yukon Mint™, a wholly-owned
subsidiary of Golden Predator.
For additional
information:
Janet Lee-Sheriff Chief Executive Officer (604) 260-8435
info@goldenpredator.com www.goldenpredator.com
1. NI 43-101 Technical Report on Preliminary
Economic Assessment for the Brewery Creek Property, Yukon
Territory, Canada, Tetra-Tech EBA dated November 19, 2014 (filed on
SEDAR).
The securities referenced in this news release
have not and will not be registered under the U.S. Securities Act
of 1933 and may not be offered or sold in the United States absent
registration or an applicable exemption from registration
requirements.
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.
No stock exchange, securities commission or
other regulatory authority has approved or disapproved the
information contained herein. This press release contains
forward-looking information that involve various risks and
uncertainties regarding future events. Such forward-looking
information can include without limitation statements express or
implied regarding the use of proceeds from the offering. Actual
results and future events could differ materially from those
anticipated in such information. These and all subsequent written
and oral forward-looking information are based on estimates and
opinions of management on the dates they are made and are expressly
qualified in their entirety by this notice. Except as required by
law, the Company assumes no obligation to update forward-looking
information should circumstances or management's estimates or
opinions change.
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