News.
SIGNATURE RESOURCES LTD. ANNOUNCES NON-BROKERED PRIVATE PLACEMENT AND THE ACQUISITION OF TWENTY-ONE ADDITIONAL CLAIMS AT ITS LINGMAN LAKE GOLD PROJECT
FOR IMMEDIATE RELEASE August 17, 2020
Toronto, Ontario, August 17, 2020 – Signature Resources Ltd. (TSXV: SGU, OTCQB: SGGTF, FSE: 3S3) ("Signature" or the "Company") is pleased to announce that it will conduct a non-brokered private placement (the “Offering”), subject to the approval of the TSX Venture Exchange (the “Exchange”), for aggregate gross proceeds of up to $1,500,000. The Offering will consist of non-flow-through units (the “NFT Units”) at a price of $0.05 per NFT Unit, and flow-through units (the “FT Units”) at a price of $0.06 per FT Unit.
“As markets react to geopolitical events and the global pandemic, the precious metal markets are responding as safe haven investments, and gold in particular is performing at unprecedented levels. In particular, investors are returning to junior gold exploration/mining companies, like Signature Resources, with its Lingman Lake gold property which hosts a historical estimate of 234,684 oz of gold. The funds will allow the company to further evaluate and advance its 12,148 hectare property. In addition, we are pleased that the detailed geophysical/structural interpretation announced in earlier press release dated June 14th, is successfully generating high priority follow-up target areas for this summer’s evaluation of them”, commented Walter Hanych, President and CEO of Signature Resources.
As a result of the geophysical/structural evaluation, Signature Resources has acquired by staking an additional 21 single cell claim units covering approximately 420 hectares. Details of this acquisition and other results of the evaluation will be released in a forthcoming press release.
Each NFT Unit issued pursuant to the Offering will consist of one common share of the Company (“Common Share”) and one common share purchase warrant (a “Warrant”). Each FT Unit issued pursuant to the Offering will consist of one Common Share issued on a flow-through basis (“FT Share”) and one-half of one Warrant. Each whole Warrant will entitle the holder thereof to acquire an additional Common Share (a “Warrant Share”) of the Company at an exercise price of $0.10 per Warrant Share for a period of 2 years from the date of issuance, provided that if after four (4) months and one (1) day following the closing of the Offering, the closing price of the Company's common shares on the Exchange is equal to or greater than $0.20 for 10 consecutive trading days, then the Company may accelerate the expiry date of the Warrants by disseminating a press release and in such case the Warrants will expire on the 30th day after the date on which such press release is disseminated by the Company. The FT Shares will qualify as “flow-through shares” (within the meaning of the Income Tax Act (Canada)).
Subject to Exchange approval, the Company may pay finder’s fees of up to 10% of the proceeds raised from the Offering and up to 10% warrants to purchase Common Shares to certain persons who introduce the Company to investors of the Offering. The securities issued pursuant to the Offering will be subject to a four-month and one day hold period in accordance with applicable Canadian securities laws and Exchange policies.
The Company has also granted 3,250,000 incentive stock options, to directors, officers and consultants of the Company. The incentive options have an exercise price of $0.10, expire five years from the date of issuance and vest upon issuance.
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.
Qualified Persons
The scientific and technical content of this press release has been prepared, reviewed and approved by Walter Hanych P.Geo. and President-CEO of Signature Resources who is a Qualified Person as defined in National Instrument 43-101 - Standards of Disclosure for Mineral Projects
About Signature
The Lingman Lake gold property consists of 622 staked claims, four free hold full patented claims and 14 mineral rights patented claims totaling approxi
