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Monday, 30 September 2013
Spanish Mountain Gold closes financings for exploration at BC property
Spanish Mountain Gold (CVE:SPA) has closed the brokered private placement financing it announced last month, raising a total of $1.25 million for exploration on its property in British Columbia. The company also said it put to bed a non-brokered placement, raising an additional $200,000.
Under the brokered placement, 8.72 million flow-through units were issued at a price of 12 cents apiece, as well as 1.97 million non-flow through units at a price of 10 cents each.
Every flow through unit is made up of one "flow-through" common share of Spanish Mountain -- designated as such for tax purposes -- and one half of one share purchase warrant. Each non flow-through unit consists of one common share and one warrant.
A whole warrant allows the holder to acquire an additional common share of the company for 15 cents, for a period of two years.
The $200,000, non-brokered private placement consisted of 2.0 million units at 10 cents apiece.
The new funds from the flow through proceeds will be used for exploration on its Spanish Mountain project in B.C., while non flow through proceeds will be used for "general corporate purposes", the company said in its release.
The Vancouver-based exploration-stage company is developing its flagship Spanish Mountain gold project in southern central British Columbia. It has no debt and owns 100 per cent of all four gold properties located in British Columbia. Last month, it announced that it embarked on a 10,000 metre drill program aimed at potentially improving grades within a test block area of the main pit at Spanish Mountain.
“Considering the current market conditions management believes this program provides the best opportunity to potentially add significant value at minimal cost to the shareholders," Colin Clancy, head of Corporate Communications at the company, toldProactiveinvestors in an interview at the time.