Mr. Irwin Olian reports
DESERT MOUNTAIN ENERGY ANNOUNCES SECOND TRANCHE OF PRIVATE PLACEMENT FINANCING
Desert Mountain Energy Corp. has arranged a non-brokered private placement of up to $859,500. This financing constitutes the second tranche of the $1.5-million private placement previously announced on June 7, 2018, of which the first tranche closed on July 19, 2018, raising $640,500. Under the terms of the second tranche of the private placement, the company will offer for sale up to 4,297,500 units at 20 cents per unit. The company anticipates the second tranche of the private placement will close by Oct. 26, 2018. In its discretion, the company may increase the size of the offering by up to 20 per cent to a maximum of nine million units in aggregate for the entire private placement.
Each unit will consist of one common share of the company and one-half of one share purchase warrant, where each whole warrant will allow the subscriber to purchase one additional common share of the company for a period of two years from the date of closing. The exercise price shall be 30 cents per share. Proceeds from the second tranche of the private placement will be utilized for exploration and development of the company's projects, working capital and general corporate purposes.
The company may, in its discretion, pay a cash finder's fee of up to 7 per cent of the total gross proceeds of the offering where applicable.
The units issued upon the closing of the second tranche of the private placement will be subject to a four-month hold period. The second tranche of the private placement is subject to the approval of the TSX Venture Exchange.
About Desert Mountain Energy Corp.
The company is an exploratory resource company engaged in exploration and development of helium, oil and gas, and mineral properties in the southwestern United States. Until Sept. 5, 2018, the company also owned the Yellowjacket gold project in Atlin, B.C., which it had been developing. The company has its executive offices in Vancouver, Canada.
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