First tranche of Financing completed
"Discovery Harbour") is pleased to announce that, further to its news release of February 3, 2020, the Company has closed the first tranche of its non-brokered private placement ("Offering") to raise gross proceeds of $187,500 (the "First Tranche") through the sale of 1,875,000 units priced at $0.10 per unit (each a "Unit"). Each Unit consists of one common share of the Company (each, a "Share") and one half common share purchase warrant, with each whole warrant (each, a "Warrant") entitling the holder to purchase one additional Share at a price of $0.15 for a period of two years from the closing date, subject to an acceleration provision of the Company whereby, if for any ten (10) consecutive trading days the closing price of the Shares on the TSX Venture Exchange (the "Exchange") exceeds $0.25 at any time commencing (4) months after the closing date and until their expiry date, then the remaining term of the Warrants will be reduced to thirty (30) days, commencing seven (7) days from the end of such ten (10) consecutive trading day period. The Company expects to complete the balance of the Offering on or before March 19, 2020.
All securities issued in the First Tranche are subject to a four month hold period expiring June 26, 2020.
Finder's fees of 6% cash ($9,450) and 6% finder's warrants (the "Finder's Warrants") (94,500 Finder's Warrants) were paid to registered representatives on $157,500 of the First Tranche. Each Finder's Warrant is exercisable into one Share at a price of $0.15 per Share for a period of two years from the date of issuance.
The Company plans to use the proceeds from the Offering for development of the Company's Caldera project and for general working capital.
Completion of the Offering is subject to the approval of the Exchange. Any participation by insiders in the Offering will constitute a related party transaction under Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101") but is expected to be exempt from the formal valuation and minority shareholder approval requirements of MI 61-101.
None of the securities sold in connection with the private placement will be registered under the United States Securities Act of 1933, as amended, and no such securities may be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
