Signature Resources Ltd. (TSXV: SGU, OTCQB: SGGTF, FSE 3S3)
("
Signature"
or the "
Company") is pleased to announce that his
has closed its non-brokered private placement previously announced
on November 9, 2020 and November 24, 2020 (the
"
Offering), which has been upsized to $2,000,000.
The Company closed the Offering effective December 4, 2020 by
issuing 22,847,201 hard dollar units ("
HD
Units") at a price of $0.05 per HD Unit and
14,293,999 flow-through units ("
FT
Units") at a price of $0.06 per FT Unit.
|
“We are thrilled with the results of our financing, and are very
happy to welcome a number of new strategic investors to Signature!
As a result of our successful financing, we are deploying resources
on multiple fronts. RFP’s for a reputable third-party resource
group have been sent, as well as the purchase and refurbishment of
equipment that is currently being sent to site. The intention is to
establish additional infrastructure that will be used for this
winter’s drill campaign and beyond to capture economies of scale.
With the anticipated success of this winter’s program, we hope to
be in a position to announce a more aggressive drilling campaign
for the spring/summer. We will provide an exploration update
shortly once the final budgets have been approved.” |
|
|
Robert
Vallis, P.Eng, MBA – President & CEO, Director |
|
Each HD Unit issued pursuant to the Offering,
consists of one common share of the Company (each, a
"Common Share") and one common share purchase
warrant (each, a "Warrant"). Each FT Unit consists
of one common share of the Company issued on a flow-through basis
("FT Share") and one half of one
(1/2) Warrant. Each whole Warrant issued will be exercisable into
one Common Share at a price of $0.10 until December 4, 2021. The FT
Shares will qualify as “flow-through shares” (within the meaning of
the Income Tax Act (Canada)).
In connection with the Offering, the Company
paid aggregate cash finder's fees of $43,481 and issued 832,557
finder's warrants (each, a
"Finder's
Warrant"). Each Finder's Warrant is exercisable to acquire
one Common Share at a price of $0.05 (for Finder's Warrants issued
pursuant to the sale of HD Units) and $0.06 (for Finder's Warrants
issued pursuant to the sale of FT Units) for a period of 12 months
following closing of the Offering.
The use of proceeds will be mainly focused on
exploration efforts at the Lingman Lake Gold Project in Ontario and
general corporate purposes.
All securities issued in the Offering, including
the Finder's Warrants, are subject to a statutory hold period
expiring on April 5, 2021.
This press release does not constitute an offer
to sell or the solicitation of an offer to buy these securities,
nor shall it constitute an offer, solicitation or sale in any
jurisdiction in which such offer, solicitation or sale is unlawful.
These securities have not been, and will not be, registered under
the United States Securities Act of 1933, as amended, or any state
securities laws, and may not be offered or sold in the United
States or to U.S. persons unless registered or exempt
therefrom.
The purchase of HD Units under the Offering by
certain officers and directors of $71,730 HD Units and $60,000 FT
Units, constituted a “related party transaction” as such term is
defined by Multilateral Instrument 61-101 - Protection of Minority
Security Holders in Special Transactions (“MI
61-101”). The Company was exempt from the MI 61-101
valuation and minority approval requirements for related party
transactions in connection with the Offering under sections 5.5(a)
and 5.7(1)(a) of MI 61-101 as neither the fair market value (as
determined under MI 61-101) of the subject matter of, nor the fair
market value of the consideration for, the transaction, insofar as
it involves certain officers and directors, exceeds 25% of the
Company’s market capitalization (as determined under MI
61-101).
About
SignatureThe Lingman Lake gold property consists
of 622 staked claims, four free hold full patented claims and 14
mineral rights patented claims totaling approximately 12,148
hectares. The property hosts an historical estimate of 234,684 oz
of gold* (1,063,904 tonnes grading 6.86 g/t with 2.73 gpt cut-off)
and includes what has historically been referred to as the Lingman
Lake Gold Mine, an underground substructure consisting of a
126.5-meter shaft, and 3-levels at 46-meters, 84-meters and
122-meters depths.
This historical resource estimate is based on
prior data and reports obtained and prepared by previous operators,
and information provided by governmental authorities. A Qualified
Person has not done sufficient work to verify the classification of
the mineral resource estimates in accordance with current CIM
categories. The Company is not treating the historical estimate as
a current NI 43-101 mineral resource estimate. Establishing a
current mineral resource estimate on the Lingman Lake deposit will
require further evaluation, which the Company and its consultants
intend to complete in due course. Additional information regarding
historical resource estimates is available in the technical report
entitled, "Technical Report on the Lingman Lake Property" dated
December 20, 2013, prepared by Walter Hanych, P.Geo., and Frank
Racicot, P.Geo., available on the Company's SEDAR profile at
www.sedar.com
To find out more about Signature Resources
Limited, visit our website at
www.signatureresources.ca , or contact:
Jonathan HeldChief Financial Officer
416-270-9566
Cautionary Notes
Neither 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 contains forward-looking
statements which are not statements of historical fact.
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 statements may be
identified by such terms as “believes”, “anticipates”, “expects”,
“estimates”, “may”, “could”, “would”, “will”, or “plan”. Since
forward-looking statements are based on assumptions and address
future events and conditions, by their very nature they involve
inherent risks and uncertainties. Although these statements are
based on information currently available to the Company, the
Company provides no assurance that actual results will meet
management’s expectations. Risks, uncertainties and other factors
involved with forward-looking information could cause actual
events, results, performance, prospects and opportunities to differ
materially from those expressed or implied by such forward-looking
information. Forward looking information in this news release
includes, but is not limited to, use of any private placement
proceeds raised, final acceptance of regulatory filings by the
TSX-V, the Company’s objectives, goals or future plans, statements,
exploration results, potential mineralization, the estimation of
mineral resources, exploration and mine development plans, timing
of the commencement of operations and estimates of market
conditions. Factors that could cause actual results to differ
materially from such forward-looking information include, but are
not limited to changes in general economic and financial market
conditions, failure to identify mineral resources, failure to
convert estimated mineral resources to reserves, the inability to
complete a feasibility study which recommends a production
decision, the preliminary nature of metallurgical test results,
delays in obtaining or failures to obtain required governmental,
environmental or other project approvals, political risks,
inability to fulfill the duty to accommodate First Nations and
other indigenous peoples, uncertainties relating to the
availability and costs of financing needed in the future, changes
in equity markets, inflation, changes in exchange rates,
fluctuations in commodity prices, delays in the development of
projects, capital and operating costs varying significantly from
estimates and the other risks involved in the mineral exploration
and development industry, and those risks set out in the Company’s
public documents filed on SEDAR. Although the Company believes that
the assumptions and factors used in preparing the forward-looking
information in this news release are reasonable, undue reliance
should not be placed on such information, which only applies as of
the date of this news release, and no assurance can be given that
such events will occur in the disclosed time frames or at all. The
Company disclaims any intention or obligation to update or revise
any forward-looking information, whether as a result of new
information, future events or otherwise, other than as required by
law.
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