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Golden Predator Completes $4.32 Million Financing


May 25, 2016

Golden Predator Mining Corp. has completed its previously announced private placement. The private placement was fully subscribed, resulting in gross proceeds to the company of $4.32-million from the sale of 27 million units at a price of 16 cents per unit. Each unit consists of one common share and one share purchase warrant. Each warrant entitles the holder to purchase one additional share at a price of 21 cents for a period of two years from the date of issue of the warrants; $904,000 worth of units comprise flow-through shares and non-flow-through warrants, and $3,416,000 worth of units comprise non-flow-through shares and non-flow-through warrants.

As a result of the closing of the financing:

  • William M. Sheriff acquired 1.9 million units and now holds a total of 11,654,000 common shares, representing 17.48 per cent of the issued and outstanding common shares of the company. In addition, Mr. Sheriff holds 1.9 million warrants, 275,000 stock options and an option to acquire from Till Capital Ltd. up to 10,312,154 shares of the company, which, if exercised, would increase his percentage ownership to 35.07 per cent.
  • Pat DiCapo owns 3.5 million common shares and four million warrants, representing 5.25 per cent of the issued and outstanding common shares of the issuer, or 10.61 per cent upon exercise of the warrants. In addition, PowerOne Capital Markets Ltd., a joint actor of Mr. DiCapo, acquired ownership and control of 1,274,000 broker warrants, with each broker warrant entitling the finder to acquire one broker unit, representing approximately 3.68 per cent of the common shares on a partially diluted basis, assuming exercise of the broker warrants and broker unit warrants only, and, when taken together with the common shares acquired by Mr. DiCapo, representing approximately 8.93 per cent of the current issued and outstanding common shares (or approximately 13.72 per cent on a partially diluted basis, assuming exercise of the warrants, broker warrants and broker unit warrants only).
  • FCMI Parent Co., an entity controlled by Albert D. Friedberg and members of his immediate family, owns four million common shares and four million warrants of the issuer, comprising 6 per cent of the issued and outstanding common shares of the issuer, or 11.32 per cent upon exercise of the warrants.
  • McEwen Mining Inc., a publicly traded company listed on the New York Stock Exchange and Toronto Stock Exchange, owns 3,125,000 common shares and 3,125,000 warrants, representing 4.69 per cent of the issued and outstanding common shares of the issuer, or 8.95 per cent upon exercise of the warrants.

The percentages in this press release are calculated based on 66,671,215 shares issued and outstanding and, in the case of diluted holdings, assume the exercise of all of the warrants and options beneficially owned by the offeror, and that no other securities, including those convertible into, or exercisable for, the issuer's securities, are issued, converted or exercised. Prior to the financing, the FCMI Parent and McEwen Mining did not own any securities of the issuer.

The units acquired by the purchasers referred to in this press release were acquired for investment purposes, and each of the purchasers or one or more of their affiliates may, depending on market and other conditions, increase or decrease its beneficial ownership of common shares or other securities of the issuer whether in the open market, by privately negotiated agreement or otherwise.

PowerOne Capital Markets acted as a finder in connection with a portion of the Canadian participants in the private placement. A total of 1,274,000 broker warrants were issued to the finder, with each broker warrant entitling the finder to purchase a broker unit of the company at a price of $16 cents per broker unit for a period of two years from the date of closing of the private placement. Each broker unit comprises one common share and one broker unit warrant. Each broker unit warrant entitles the finder to purchase one common share at an exercise price of 21 cents per common share for a period of two years from the date of closing of the private placement.

All securities issued will be subject to a four-month hold period.

Proceeds from the financing will be applied to the company's 3 Aces project and Brewery Creek project and for general working capital.