GOLDEN RIDGE RESOURCES LTD. announces it has closed its previously announced financing and issued 14,333,333 units of the Company at a price of $0.15 per unit for gross proceeds of $2,150,000.
GOLDEN RIDGE RESOURCES LTD. (TSXV:GLDN) (“Golden Ridge” or the “Company“) announces it has closed its previously announced financing (see news release of July 2, 2020 and July 8, 2020) and issued 14,333,333 units (a “Unit”) of the Company at a price of $0.15 per unit for gross proceeds of $2,150,000 (the “Offering“).
Each Unit consists of one common share of the Company and one-half of one common share purchase warrant (each whole warrant a “Warrant“). Each Warrant entitles the holder to acquire one additional common share in the capital of the Company at a price of $0.25 per share until July 24, 2022.
In connection with the Offering the Company has paid aggregate finders’ fees of $45,178 in cash and issued 301,185 finder warrants (a “Finder Warrant“). Each Finder Warrant entitles the holder to acquire one additional common share in the capital of the Company at a price of $0.25 per share on the same terms as the Warrants until July 24, 2022.
Insiders of the Company participated in the Offering for an aggregate amount of approximately $229,000. Such participation is considered a related party transaction within the meaning of Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101“). In completing such transaction, Golden Ridge relied on the applicable exemptions from the valuation requirement and minority security holder approval requirements available under Sections 5.5(a) and 5.7(a) of MI 61-101, respectively, on the basis that the participation in the Offering by insiders did not exceed 25% of the Company’s market capitalization.
The proceeds of the Offering will be used for exploration activities on its Canadian properties and working capital respectively. All securities issued pursuant to the Offering will be subject to a statutory four month and one day hold period expiring on November 25, 2020.
The Units have not been, and will not be, registered under the U.S. Securities Act or any U.S. state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons absent registration or any applicable exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws
About Golden Ridge
Golden Ridge is a TSX-V listed exploration company engaged in acquiring and advancing mineral properties located in British Columbia and Newfoundland. Golden Ridge owns a 100% interest in the 1,700-hectare Hank copper-gold-silver-lead-zinc property located in the Golden Triangle district, approximately 140 kilometres north of Stewart, British Columbia and has a portfolio of exploration projects in Newfoundland.
ON BEHALF OF THE BOARD OF DIRECTORS OF
GOLDEN RIDGE RESOURCES LTD.
President and Chief Executive Officer
For more information regarding this news release, please contact:
Mike Blady, CEO and Director
Cautionary Note Regarding Forward-Looking Statements
Certain statements contained in this news release, constitute “forward-looking information” as such term is used in applicable Canadian securities laws. Forward-looking information is based on plans, expectations and estimates of management at the date the information is provided and is subject to certain factors and assumptions, including: that the Company’s financial condition and development plans do not change as a result of unforeseen events, that the Company obtains required regulatory approvals, that the Company continues to maintain a good relationship with the local project communities. Forward-looking information is subject to a variety of risks and uncertainties and other factors that could cause plans, estimates and actual results to vary materially from those projected in such forward-looking information. Factors that could cause the forward-looking information in this news release to change or to be inaccurate include, but are not limited to, the risk that any of the assumptions referred to prove not to be valid or reliable, which could result in delays, or cessation in planned work, that the Company’s financial condition and development plans change, delays in regulatory approval, risks associated with the interpretation of data, the geology, grade and continuity of mineral deposits, the possibility that results will not be consistent with the Company’s expectations, as well as the other risks and uncertainties applicable to mineral exploration and development activities and to the Company as set forth in the Company’s Management’s Discussion and Analysis reports filed under the Company’s profile at www.sedar.com. There can be no assurance that any forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, the reader should not place any undue reliance on forward-looking information or statements. The Company undertakes no obligation to update forward-looking information or statements, other than as required by applicable law.
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.
The Offering included subscriptions by three insiders of the Company. Mr. Ernesto Echavarria, a director, insider and a control person of the Company (as defined by the policies of the TSX Venture Exchange) purchased 8,182,000 Units.
Subscriptions completed by insiders in the Offering, including the subscription by Mr. Echavarria, constituted a “Related Party Transaction” under Policy 5.9 of the TSX Venture Exchange, which adopts Multilateral Instrument 61-101 (“MI 61-101”) as a policy of the TSX Venture Exchange
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