Sirios Closes a Private Placement for CA$1.48 M; Newmont Goldcorp Increases Ownership to 19.9%
October 21 2019 - 8:30AM
Management of
SIRIOS RESOURCES INC. (TSX-V: SOI)
is pleased to announce the completion of a
non-brokered private placement for aggregate gross proceeds of
CA$1,480,000 by the issuance of 7,400,000 units at CA$0.20 per
unit.
Newmont Goldcorp has exercised its right to
increase its ownership from 15.9% up to 19.9% of the share capital
of Sirios on a partially diluted basis by acquiring 5,410,020 units
for an amount of CA$1,082,004.
Each unit consists of one common share of Sirios
and one-half of one share purchase warrant. Each full warrant gives
the holder the right to purchase one common share at an exercise
price of CA$0.30 per share for eighteen months following the
closing date.
Dominique Doucet, President of Sirios, states:
«We are very pleased and proud to have strong support from Newmont
Goldcorp, our main shareholder, who subscribed for 73% of today's
placement. I would also like to thank SIDEX for their contribution.
These new funds will allow a significant and ordered progression of
our Cheechoo gold project.»
There will be a hold period of four months and
one day on all securities issued under this placement. The TSX
Venture Exchange has conditionally approved the private placement.
No finder's fees were paid for the placement. Two directors of
Sirios participated in the placement for a total amount of
CA$30,000.
The proceeds of the placement will be used by
Sirios for exploration fieldwork, exploration infrastructure
improvements on its Cheechoo gold project as well as for general
corporate and working capital purposes. Cheechoo neighbours Newmont
Goldcorp’s Éléonore gold mine located in Eeyou Istchee James Bay.
Please refer to Sirios’ website for more information on this
project.
Newmont Goldcorp Corporation («Newmont
Goldcorp») indirectly acquired ownership of (i) 5,410,020 common
shares, representing 3.3% of the issued and outstanding common
shares, and (ii) 2,705,010 warrants, representing approximately 46%
of the issued and outstanding warrants, through Goldcorp Inc.
(«Goldcorp»), its wholly owned subsidiary. Immediately prior to the
acquisition, Newmont Goldcorp owned 24,982,352 common shares,
representing approximately 15.99% of the issued and outstanding
common shares. Following the acquisition, Newmont Goldcorp owns
30,392,372 common shares, representing approximately 18.6% of the
issued and outstanding common shares and 2,705,010 warrants,
representing approximately 46% of the issued and outstanding
warrants. Should Newmont Goldcorp exercise all of the warrants,
Newmont Goldcorp would hold 33,097,382 common shares representing
approximately 19.9% of the issued and outstanding common shares (on
a partially diluted basis). Newmont Goldcorp acquired the
securities for investment purposes. Newmont Goldcorp will evaluate
its investment in Sirios from time to time and may, based on such
evaluation, market conditions and other circumstances, increase or
decrease shareholdings as circumstances require. The exemption
relied on for the acquisition of the units is Section 2.3 of
National Instrument 45-106 – Prospectus Exemptions. A copy of the
Early Warning report filed by Newmont Goldcorp in connection with
the acquisition is available on Sirios’ SEDAR profile. Newmont
Goldcorp’s head office is located in Greenwood Village, Colorado,
USA.
Neither the 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.
Contact:Dominique Doucet,
President, CEO, Eng.Tel: (514)
510-7961ddoucet@sirios.comWebsite:
www.sirios.com
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