Sirios Closes a Private Placement for CA$1.48 M; Newmont Goldcorp Increases Ownership to 19.9 Percent
Sirios Resources Inc. is pleased to announce the completion of a non-brokered private placement for aggregate gross proceeds of CA$1,480,000.
Management of Sirios Resources Inc. (TSXV: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.