Garibaldi Closes $8 Million First Tranche
Garibaldi Closes $8 Million First Tranche
TSX.V: GGI
OTC: GGIFF
Frankfurt
: RQM
VANCOUVER
,
Oct. 20, 2017
/CNW/ - Garibaldi Resources (TSX.V: GGI) (the "Company" or "Garibaldi") is pleased to confirm closing of the first
tranche of the Company's recently announced
$10 million
private placement (see
October 16, 2017
news release) for gross proceeds of
$8 million
.
Garibaldi issued 2,539,683 units at
$3.15
per unit with each unit consisting of one common share of the Company and one full share purchase warrant
exercisable at a price of
$4.50
per share for a period of two years. All units from the private placement are subject to a 4-month hold period from the
date of issuance. The private placement is subject to final TSX Venture approval.
Of the units issued, 2176423 Ontario Ltd., a corporation beneficially owned by Mr.
Eric Sprott
, has acquired 1,587,302 units representing gross
proceeds of
$5 million
. As a result of the closing of this first tranche, Mr. Sprott has increased his Garibaldi share position (see
October 2, 2017
news
release) and now beneficially owns and controls 11,271,895 common shares and 5,538,895 share purchase warrants, representing approximately
11.7% of the issued and outstanding common shares of the Company on a non-diluted basis and 16.5% on a partially diluted basis. Prior to this first
tranche, Mr. Sprott beneficially owned and controlled 9,684,593 common shares and 3,951,593 share purchase warrants representing approximately
10.4% of the issued and outstanding common shares of the Company on a non-diluted basis and 14.0% on a partially diluted basis.
The units were acquired by Mr. Sprott and 2176423 Ontario Ltd. for investment purposes. Mr. Sprott has a long-term view of the investment and
may acquire additional securities of the Company either on the open market or through private acquisitions or sell securities of the Company 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 Street, Suite 2600, Royal Bank Plaza, South Tower,
Toronto, Ontario
, M5J 2J2).
Proceeds from the first tranche will be used to further advance the E&L Nickel Mountain Project in addition to other Garibaldi properties in the Eskay
Camp and elsewhere in
British Columbia
, and will also be applied to the Company's gold and silver properties in
Mexico
About Garibaldi
Garibaldi Resources Corp. is an active Canadian-based junior exploration company focused on creating shareholder value through discoveries and
strategic development of its assets in some of the most prolific mining regions in
Mexico
and
British Columbia
.
We seek safe harbor.
GARIBALDI RESOURCES CORP.
Per:
"Steve Regoci"
Steve Regoci
, President
Neither
the
TSX
Venture
Exchange
nor
its
Regulation
Services
Provider
accepts
responsibility
for
the
adequacy
or
the
accuracy
of
this
release.
SOURCE
Garibaldi Resources Corp.
View original content: http://www.newswire.ca/en/releases/archive/October2017/20/c6374.html
%SEDAR: 00004262E
For further information:
GARIBALDI RESOURCES CORP., 1150 - 409 Granville Street Vancouver, BC V6C 1T2, Telephone: (604) 488-8851,
Website: GaribaldiResources.com
CO: Garibaldi Resources Corp.
CNW 20:31e 20-OCT-17