Golden Reign Resources (GRR-V) closes $413,000 PP
Golden Reign Resources Ltd. has closed the first tranche of its previously announced non-brokered private placement consisting of 2,429,411 units at a price of 17 cents per unit to raise gross proceeds of $413,000. Each unit is comprised of one common share and one share purchase warrant which entitles the holder to purchase an additional common share a price of $0.25 for a period of two years. In connection with the offering, the Company has agreed to pay finder's fees of $20,850 cash and 28,235 warrants priced at $0.25 per share exercisable for a period of two years. The common shares issued pursuant to this private placement are subject to a four month hold period. The placement and payment of the finder's fees have been accepted by the TSX Venture Exchange. Proceeds of the placement will be applied to costs related to the San Albino-Murra Gold Property in Nicaragua and for general working capital.
Insider Participation in Offering
Bryce Porter, Rael Lipson and William Meyer participated in the private placement by subscribing for an aggregate of 135,294 units for aggregate proceeds of $23,000. The participation by the directors is considered a "related party transaction" as defined under Multilateral Instrument 61-101 ("MI 61-101"). The transaction is exempt from the formal valuation and minority shareholder approval requirements under MI 61-101 as neither the fair market value of the units issued to, nor the consideration paid by, the related parties exceeded 25% of the Company's market capitalization. |
