Ms. Janet Lee-Sheriff reports
Golden Predator Mining Corp. has completed its previously announced brokered private placement for gross proceeds of $16,361,280. Pursuant to the private placement the company sold a total of 11,036,000 non-flow-through units at a price of 73 cents per unit and 8,305,000 flow-through units of the company at a price of $1.00 per flow-through unit. Each unit consists of either a flow-through or non-flow-through common share of the company and one-half of a share purchase warrant.
Each warrant entitles the holder to purchase one additional common share of the company at a price of $1.00 per share for a period of two years from the closing date. The expiry date of the warrants can be accelerated if the company's volume-weighted average price is $2.50 for 20 consecutive trading days, in which event the company may give notice that the warrants expire 30 days following the notice of acceleration.
Eric Sprott acquired 10 million non-flow-through units (for total consideration of $7.3-million) pursuant to the private placement. As a result, Mr. Sprott now holds 13.55 per cent of the issued and outstanding common shares of the company on a non-diluted basis and 19.04 per cent on a partially diluted basis, assuming exercise of the warrants. The above percentages are calculated based on 73,788,462 common shares issued and outstanding after giving effect to the private placement. Prior to the financing, Mr. Sprott owned 80 common shares of the company. The units were acquired by Mr. Sprott for investment purposes. Mr. Sprott has a long-term view of the investment and may acquire additional common shares either on the open market or through private acquisitions, or sell the common shares either on the open market or through private dispositions in the future, depending on market conditions, reformulation of plans and/or other relevant factors. A copy of Mr. Sprott's early warning report will appear on the company's profile on SEDAR and may also be obtained by calling 416-362-7172 (200 Bay St., Suite 2600, Royal Bank Plaza, south tower, Toronto, Ont., M5J2J2).
The private placement financing was co-led by Clarus Securities Inc. and PowerOne Capital Markets Ltd., and includes a syndicate of GMP Securities LP and Canaccord Genuity Group Inc. The company paid cash commissions of $1,119,126 and issued 1,318,030 warrants to the agents for their services in connection with 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 general working capital.
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