The Conversation (0)
Scorpio Gold (TSXV:SGN) has entered into a non-binding letter of intent with Coral Reef Capital LLC for a private placement to raise proceeds of US$15 million. Following the financing, it is anticipated that Coral Reef will hold 49.8 percent of Scorpio Gold’s outstanding shares.
As quoted in the press release:
The Placement is structured to close in two tranches: an initial tranche (“Tranche A”) for gross proceeds of US$3,750,000, and a second tranche (“Tranche B”) for gross proceeds of US$11,250,000. Tranche A will close following the completion of certain conditions precedent, including Coral Reef’s completion of a due diligence review of Scorpio Gold and its operations and definitive documentation. Tranche B will close following the completion of further conditions precedent, including the receipt of the approval of Scorpio’s shareholders. The closing of both tranches remains subject to the approval of the TSX Venture Exchange.
Scorpio Gold CEO, Peter Hawley, said:
We view Coral Reef as a sophisticated, stable, long term-strategic investor that will provide Scorpio Gold the support and financial capability to accelerate the growth of the Company. Coral Reef is very familiar with the Nevada mining sector owning the Denton-Rawhide mine and an advanced exploration project. Their support will not only allow the Company to expand its exploration programs at both Mineral Ridge and Goldwedge but also to grow our production profile through organic and M&A means with the objective of bringing Scorpio Gold to the next level.
Click here to read the Scorpio Gold (TSXV:SGN) press release