Highway 50 Gold (HWY-V) March 3rd 2014 has completed the previously announced non-brokered private placement raising gross proceeds of $2.6-million through the sale of 7,027,025 units at a purchase price of 37 cents per unit. Each unit consists of one common share of the company and one non-transferable common share purchase warrant. Each warrant entitles the holder thereof to purchase one additional common share of the company at an exercise price of 60 cents until Feb. 28, 2015.
In connection with the offering the company engaged finders at arm's length to the company to introduce purchasers to the company. In consideration for the services provided by the finders to the company, the company paid cash finders' fees in the aggregate of $38,332 and issued an aggregate of 24,500 units to finders, with each unit having the same terms as the units issued in the private placement. In addition, the company also issued to the finders finder options exercisable until Feb. 28, 2015, entitling them to acquire up to 128,100 common shares of the company at a purchase price of 45 cents per finder share.
The net proceeds of the offering will be used toward the Porter Canyon project and for general working capital purposes.
The securities issued pursuant to the offering, including the finder units and finder options, are subject to a four-month hold period that expires on July 1, 2014.
Further to the company's press release dated Dec. 20, 2013, in which it announced that it had entered into a letter of intent with Regulus Resources Inc. with respect to a proposed grant of an option to Regulus to acquire a 50-per-cent option in the company's Golden Brew project located in Nevada, the company has entered into a definitive option agreement with Regulus dated Feb. 19, 2014, with respect to the option. In order to exercise the option, Regulus must, among other things, spend $5-million (U.S.) on exploration expenditures on the project over five years, and assume the underlying third party lease payments and claimholding costs. An exploration expenditure of $500,000 (U.S.) in the first year is a firm commitment. Upon earn-in the parties will form a joint venture on a 50:50 basis. In addition, as an integral part of the grant of the option, Regulus purchased an aggregate of two million units in the offering for proceeds of $740,000. |
