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Golden Arrow closes first tranche and increases non-brokered private placement

Published by , Assistant Editor
Global Mining Review,

Golden Arrow Resources Corporation (Golden Arrow) has closed the first tranche of a non-brokered private placement (the Private Placement) through the issuance of 4 062 500 units (Units) at a subscription price of CAN$0.20 per unit for aggregate gross proceeds to the company of CAN$812 500. In addition, due to continued strong demand, the company has increased the Unit offering to up to CAN$1 million in aggregate gross proceeds. All other terms of the financing will remain the same.

As disclosed in the company's news release of 18 June 2019, the units will be sold at a price of CAN$0.20 per unit. Each unit will consist of one common share and one transferrable common share purchase warrant. Each warrant will entitle the holder thereof to purchase one additional common share in the capital of the company at CAN$0.30 per share for three years from the date of issue.

Finder's fees of CAN$30 100 are payable in cash on a portion of the private placement to parties at arm's length to the company. In addition, 150 500 non-transferable finder's warrants are being issued (the Finder's Warrants). Each Finder's Warrant entitles a finder to purchase one common share at a price of CAN$0.30 per share for three years from the date of issue, expiring on 19 June 2022. 

The proceeds of the financing will be used for general working capital.

Certain insiders of the company participated in the first tranche of the Private Placement for CAN$22 500 in Units. Such participation represents a related-party transaction under Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions (MI 61-101), but the transaction is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as neither the fair market value of the subject matter of the transaction, nor the consideration paid, exceed 25% of the company's market capitalisation.

This financing is subject to regulatory approval and all securities to be issued pursuant to the financing are subject to a four-month hold period expiring on 19 October 2019.

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