Golden Tag Announces Closing of $1.125 Million Non -Brokered Financing Including Strategic Investment by Eric Sprott
Golden Tag Announces Closing of $1.125 Million Non -Brokered
Financing Including Strategic Investment by Eric Sprott
Toronto, Ontario, June 5, 2020: Golden Tag Resources Ltd. (“ Golden Tag” or the " Company" )
(TSX.V: GOG) is pleased to announce closing of the non- brokered private placement offering (the
“Private Placement”, or “Financing”) announced on May 28, 2020 for aggregate gross proceeds
$1,125,000. Subsequent to closing the Financing the Company has cash balances of approximately
$2.1 million, and no debt.
Greg McKenzie, President and CEO commented, "We are pleased with the strong support in this
raise. Eric Sprott and a group of participating cornerstone investors collectively share our strategic
goal of creating value for all shareholders."
Non-brokered Financing
Pursuant to the Financing, the Company issued 20,000,000 Units for gross proceeds of $1,125,000
by way of non-brokered private placement at a price of $0.05625 per Unit. Each Unit consists of one
common share in the capital of the Company (a “Share”) and one- half of one Share purchase
warrant (a "Warrant"). Each whole Warrant will entitle the holder thereof to purchase one Share at a
price of $0.075 for a period of two years from the date of issuance. In connection with the Financing,
fees were provided consisting of a cash payment of $24,350 and the issuance of 392,005 warrants
(the “Broker Warrants”). Each whole Broker Warrant entitles the holder to acquire one Unit for
$0.05625 for a period of two years from the date of issuance. All securities issued are subject to a
four-month hold period.
The proceeds of the financing will be used for working capital purposes and to investigate new
mineral projects. Mr. McKenzie, President and CEO, and Mr. Ansley, VP Corporate Development &
Investor Relations, subscribed for 5,333,500 Units and 1,000,000 Units, respectively.
Additional Mandated Disclosure Respecting Mr. Sprott’s Investment in the Company
The following disclosure is provided by Mr. Sprott who assumes responsibility for it. Mr. Sprott
through 2176423 Ontario Ltd., a corporation that is beneficially owned by him, acquired 3,555,600
Units pursuant to the Private Placement for a total consideration of $200,002.50. Subsequent to the
Private Placement, Mr. Sprott beneficially owns or controls 18,625,932 Shares of Golden Tag and
8,277,800 Warrants of the Company representing approximately 14.3 % of the issued and
outstanding Shares of the Company on a non- diluted basis and approximately 19.5 % of the issued
and outstanding Shares of the Company on a partially diluted basis assuming exercise of the
warrants acquired hereunder and forming part of the Units. Prior to the Financing, Mr. Sprott
beneficially owned or controlled 15,070,332 Shares and 6.500,000 Warrants 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 securities of Golden Tag including on the open market or
through private acquisitions or sell securities of Golden Tag including on the open market or through
private dispositions in the future depending on market conditions, reformulation of plans and/or other
factors that Mr. Sprott considers relevant from time to time.
A copy of Sprott's early warning report will appear on Golden Tag’s profile on SEDAR and may
also be obtained by calling Mr. Sprott’s office at (416) 945- 3294 (200 Bay Street, Suite 2600,
Royal Bank Plaza, South Tower, Toronto, Ontario M5J 2J1).
About Golden Tag Resources
Golden Tag Resources Ltd. is a junior exploration company exploring for high-grade silver deposits.
The Company holds a 100% interest in the San Diego property in Durango State, Mexico. The San
Diego property is located within the Velardeña Mining District, the site of several mines hav ing
produced silver, zinc, lead and gold over the past century. For more information regarding the San
Diego property please visit our website at www.goldentag.ca. Golden Tag has no debt and following
the Private Placement ha s 129,806,558 shares issued and outstanding, as well cash balances of
approximately $2.1 million.
For additional information, please contact:
Greg McKenzie, President & CEO
Ph: 416-504-2024
Email: [email protected]
www.goldentag.ca
Cautionary Statement:
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in
the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of
this news release.
This News Release includes certain “forward- looking statements” which are not comprised of
historical facts. Forward- looking statements include estimates and statements that describe the
Company’s future plans, objectives or goals, including words to the effect that the Company, or
management, expects a stated condition or result to occur. Forward looking information in this news
release includes, but is not limited to, the anticipated size of the Offering, the anticipated closing date
and the completion of the Offering, the anticipated use of the net proceeds fr om the Offering, the
receipt of all necessary approvals, including the approval of the TSX-V, the ability to find and acquire
new resource mineral projects