Sandspring Resources (SSP-V) May 6, '16 is pleased to announce that the Company has closed the oversubscribed non-brokered private placement announced on April 19, 2016 consisting of 20,315,500 units for gross proceeds of C$6.5 million.
Each Unit consists of one common share in the capital of the Company at a price of C$0.32 per share and one common share purchase warrant exercisable into one common share at an exercise price of C$0.42 until May 6, 2021. All securities issued pursuant to the Private Placement are subject to a four-month hold period expiring September 7, 2016. Finder's fees of C$120,508 and 156,250 Units were issued in relation to the private placement.
The Company intends to use the proceeds to undertake an exploration program on its Toroparu Gold Project in Guyana, South America, and for general working capital.
"That the Sandspring private placement was oversubscribed underscores the leverage that Sandspring provides to a strengthening gold price," said Rich Munson, Director and Chief Executive Officer of Sandspring. "Sandspring is now financed well into 2017, including a moderate exploration program in 2016 at the Toroparu Gold Project."
On behalf of the Board of Directors of Sandspring Resources
Richard A. Munson, Director and Chief Executive Officer
About Sandspring Resources Ltd.
Sandspring Resources Ltd. is a Canadian junior mining company currently moving toward a definitive feasibility study for the multi-million ounce Toroparu Project in the Republic of Guyana. A gold and silver purchase agreement with Silver Wheaton and the transaction with PNO Resources Ltd. that closed in September 2015 (see Sandspring press release dated September 14, 2015) provide Sandspring with a strong base as it proceeds with the ongoing development of the Toroparu Project. A prefeasibility study completed in May 2013 (NI 43-101 Technical Report, Prefeasibility Study, Toroparu Gold Project, Upper Puruni River Area, Guyana, dated May 24, 2013 completed by SRK Consulting (U.S.), Inc., available on SEDAR at www.sedar.com) outlined the design of an open-pit mine producing more than 200,000 ounces of gold annually over an initial 16-year mine life. Significant exploration potential, along with copper credits, provides additional upside potential for the Toroparu Project. Additional information is available at www.sandspringresources.com or by email at info@sandspringresources.com.
CONTACT INFORMATION:
Sandspring Resources Ltd.
Ms. Rhylin Bailie
Vice President, Communications & Investor Relations
604-609-5132
info@sandspringresources.com
www.sandspringresources.com
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