TORONTO, Feb. 27, 2020 /CNW/ - Orefinders Resources
Inc. ("Orefinders" or the "Company") (TSX.V: ORX) is pleased to
announce that it has closed the hard dollar portion of its
non-brokered private placement previously announced on February 4, 2020 for aggregate proceeds of
$1,490,000 (the "Offering"). Upon
closing of the Offering, the Company issued 29,800,000 units (the
"Hard Dollar Units"), at a price of $0.05 per Hard Dollar Unit, where each Hard
Dollar Unit consists of one common share and one-half of one common
share purchase warrant. Each whole warrant will entitle the holder
to purchase one additional common share of the Company at a price
of $0.08 for a period of 24 months
from the date of issuance.
In accordance with applicable securities laws in Canada, the common shares and warrants issued
as part of this Offering will be subject to a four month and one
day hold period from the date of closing of the Offering.
Mr. Eric Sprott, through 2176423
Ontario Ltd., a corporation which is beneficially owned by him,
acquired 12,857,160 Units for a total consideration of $642,858. Following the completion of the private
placement, Mr. Sprott beneficially owns and controls 12,857,160
Common Shares and 6,428,580 Warrants of the Company representing
approximately 8.07% of the issued and outstanding Common Shares of
the Company on a non-diluted basis and approximately 11.64% of the
issued and outstanding Common Shares on a partially diluted basis.
Prior to the Financing, Mr. Sprott did not beneficially own or
control any shares of the Company.
The Units were acquired by Sprott for investment purposes. Mr.
Sprott has a long-term view of the investment and may acquire
additional securities of Orefinders including on the open
market or through private acquisitions or sell securities of
Orefinders including on the open market or through private
dispositions in the future depending on market conditions,
reformulation of plans and/or other relevant factors.
A copy of Sprott's early warning report will appear on
Orefinders profile on SEDAR and may also be obtained by calling Mr.
Sprott's office at (416) 945-3294 (200 Bay Street, Suite 2600,
Royal Bank Plaza, South Tower, Toronto,
Ontario M5J 2J1).
In consideration for introducing certain subscribers to the
Offering, the Company has paid certain arm's length finders an
aggregate of 1,028,571 units.
The Company expects to close the balance of this Financing
consisting of Flow Through Units in the near term.
This news release does not constitute an offer to sell or a
solicitation of an offer to buy any of the securities in
the United States. The securities
have not been and will not be registered under the United States
Securities Act of 1933, as amended (the "U.S. Securities Act") or
any 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 unless registered under the
U.S. Securities Act and applicable state securities laws, unless an
exemption from such registration is available.
About Orefinders Resources Inc.
Orefinders is a Gold exploration and development company focused
in the Kirkland Lake District of
Ontario's Abitibi Greenstone Belt.
The Company is listed on the TSX Venture Exchange under the symbol
ORX.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release. Certain information in this press release
may contain forward-looking statements. This information is based
on current expectations that are subject to significant risks and
uncertainties that are difficult to predict. Actual results might
differ materially from results suggested in any forward-looking
statements. Orefinders' assumes no obligation to update the
forward-looking statements, or to update the reasons why actual
results could differ from those reflected in the forward
looking-statements unless and until required by securities laws
applicable to Orefinders. Additional information identifying risks
and uncertainties is contained in filings by Orefinders with
Canadian securities regulators, which filings are available under
Orefinders' profile at www.sedar.com
SOURCE Orefinders Resources Inc.