DESERT MOUNTAIN ENERGY ANNOUNCES PRIVATE PLACEMENT
BY Canada NewsWire
— 3:00 AM ET 06/08/2022
TSX.V: DME
U.S. OTC: DMEHF
Frankfurt: QM01
VANCOUVER, BC, June 8, 2022 /CNW/ - DESERT MOUNTAIN ENERGY CORP. (DMEHF) (the "Company") (TSXV: DME) (U.S. OTC: DMEHF) is pleased to announce that it is proceeding with a non-brokered private placement offering to raise up to CAD $5 Million. Under the terms of the private placement, the Company will offer for sale up to 1.667 million Units (the "Units") at CAD $3.00 per Unit. The Company may in its sole discretion increase the maximum of the offering by up to 5% to a maximum of 1.75 million Units.
Each Unit will consist of one common share of the Company and one share purchase warrant (the "Warrants"), with each whole Warrant allowing the subscriber to purchase one additional share of the Company for a period of three years from the date of the closing at a price of CAD $4.00 per share. The expiry of the Warrants may be accelerated at the election of the Company by written notice if the closing price for the common shares on the TSX Venture Exchange shall be equal to or greater than CAD $8.00 per share for a minimum of ten consecutive trading days. Finder's fees are payable of up to 7% in cash and 5% in finder warrants, with the finder warrants having an exercise price of CAD $4.00 per share, but with no forced conversion. Proceeds from the private placement will be utilized for exploration and development of the Company's helium projects, as well as working capital and general corporate purposes.
The Units will be subject to a 4-month hold period. The private placement is subject to the approval of the TSX Venture Exchange.
"We, like every other Company, are dealing with inflationary and supply chain bottleneck pressures," says Robert Rohlfing, CEO of Desert Mountain Energy Corp. (DMEHF) "Having a healthy treasury has been invaluable in staying ahead of inflation by prepaying for essential components of our business such as cement, fuel and steel. This raise with minimal dilution allows us to continue with that strategy."
