07:59:15 EDT Thu 28 Mar 2024
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Savannah Gold Corp (2)
Symbol SAV
Shares Issued 4,746,021
Close 2017-04-10 C$ 0.315
Market Cap C$ 1,494,997
Recent Sedar Documents

Savannah Gold closes $600,000 private placement

2017-04-10 19:26 ET - News Release

Mr. Praveen Varshney reports

SAVANNAH GOLD CORP. CLOSES NON-BROKERED PRIVATE PLACEMENT

Savannah Gold Corp. has closed, oversubscribed, its previously announced non-brokered private placement of three million units at a price of 20 cents per unit for aggregate gross proceeds of $600,000.

Each unit consists of one common share of the company and one-half of one transferable common share purchase warrant, with each warrant entitling the holder thereof to acquire one additional common share at a price of 40 cents until April 10, 2019, subject to acceleration. In the event the closing price of the common shares on the TSX Venture Exchange is greater than 80 cents per common share during any 20-consecutive-trading-day period between Oct. 11, 2017, and the expiry date, the company may accelerate the expiry date by giving notice to the warrantholders by news release that the warrants will expire at 4 p.m. Vancouver time on the date that is 30 days from the date of the acceleration notice. In such instance, all warrants that are not exercised prior to the accelerated expiry date will expire on the accelerated expiry date.

In connection with closing of the offering the company paid finders' fees of $29,750 and issued 148,750 non-transferable finders' warrants to certain agents in accordance with applicable securities laws and the policies of the exchange. The net proceeds from the offering will be used for general working capital and to review potential new business opportunities.

Praveen Varshney, president, chief executive officer and a director of the company, comments: "We are pleased to have completed the recapitalization of Savannah, which has enabled us to pay off all liabilities, and leave Savannah with a pool of capital we can utilize to conduct due diligence and negotiate the acquisition of a business or project to complete the company's reactivation. Varshney Capital Corp. has been working with several private enterprises in an advisory and capital raising capacity, and continues to experience strong deal flow. Now that Savannah has available working capital, we intend to move ahead quickly to complete a transaction with one of the private businesses that we have been working with or with one of the opportunities that have recently been presented to us. We would like to welcome all new shareholders to the company and thank you for your support."

The securities issued under the offering will be subject to a standard four-month-and-one-day hold period. Mr. Varshney subscribed for 45,000 units under the offering and Marco Strub, a director of the company, subscribed for 40,000 units. The subscriptions by Mr. Varshney and Mr. Strub constitute related-party transactions under Multilateral Instrument 61-101, protection of minority securityholders in special transactions. Because the value of the subscriptions is less than 25 per cent of the company's market capitalization, they are exempt from the formal valuation and minority shareholder approval requirements of MI 61-101.

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