Black Dragon Closes $127,000 First tranche of Financing

Black Dragon Gold Corp. (TSXV:BDG;FWB:BCD) has closed the first tranche of its financing. The company has issued 2.31 million units for aggregate gross proceeds of $127,000 of its previously announced private placement, as described in its news release dated Oct. 26, 2016. The company anticipates the completion of a further tranche of the financing over the following week of $270,000 and will provide further updates. The company is completing small initial tranches in order to address short-term capital requirements and ensure its continuing diversity of holders.
Financing update
The company is considering alternative financing structures for the balance of the financing announced on Oct. 26, 2016, including alternative debt instruments or significant investments from single entities. It should be noted that if it is considered prudent to complete the financing and close on subscription agreements on the terms previously announced, management reserves the right to do so.
In addition to closing the definitive agreements with RMB, as announced on Nov. 15 2016, the company is also considering raising sufficient capital to purchase the RMB royalty. The balance of the funds raised will be used for fast-tracking the feasibility study, finalizing permitting and for general working capital purposes.
Close of first tranche
Each unit was priced at 5.5 cents per unit, and comprised one common share of the company and a one share purchase warrant entitling the holder to purchase one common share at a price of 11 cents per share for a period of 24 months. If, during this 24-month period, the volume-weighted average price (VWAP) of Black Dragon’s common shares is at least 22 cents for a period of seven consecutive trading days, Black Dragon may, at its option, accelerate the expiry date of the warrants by issuing a news release or giving written notice thereof to all holders of these warrants, and, in such case, these warrants will expire on the earlier of the 30th day after the date on which the news release or written notice is provided by Black Dragon, and the original expiry date.
Of the 2.31 million units, 1.41 million units are subject to a hold period expiring on April 7, 2017, and 900,000 are subject to a hold period expiring on April 8, 2017. At this time, the company will pay a finder’s fee of $660 on the private placement.
Proceeds from the private placement will be used for general working capital.
Read full company profile.
Brian Wesson commented: “Management is committed to ensuring the best value is realized by the shareholders of the company. Although the equity raise previously announced is the most straightforward path to the planned funding and will bring significant value, we believe it is prudent to analyze other funding options that have been presented to management.”
© 2016 Canjex Publishing Ltd.
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