Mr. Donald Penner reports
SITKA GOLD ANNOUNCES $1,320,000 FINANCING
Sitka Gold Corp. has arranged a non-brokered private placement of up to six million units at a price of 22 cents per unit for gross proceeds of up to $1.32-million. Each unit will consist of one
common share of the company and one-half of one share purchase warrant. Each whole warrant will entitle the holder to purchase an additional common share at a price of 30 cents for a period of 12 months from the date of closing of the private placement.
This private placement is being offered on a non-brokered basis and the units will be subject to a statutory hold period of four months and a day from the closing date of the private placement. The company may pay a cash finder's fee of up to 7 per cent of the gross proceeds of the private placement and issue share purchase warrants to qualified finders equivalent to 7 per cent of the number of common shares included in the private placement. Each finder's warrant will entitle the holder to purchase one common share of the company at a purchase price of 30 cents for a period of 12 months after the closing date of the private placement and in accordance with the rules and policies of the Canadian Securities Exchange. The private placement remains subject to regulatory approval.
The company intends to use the net proceeds of the private placement for exploration work on its Arizona, Nevada and Yukon gold properties and general working capital.
The company is currently drilling at its Burro Creek gold property in Arizona with the second shipment of drill core from this drill program currently at ALS Laboratories for analysis.
We seek Safe Harbor.
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