Receives initial $500,000, remainder available over next six months
New York, Jan. 28 - Spartan Gold Ltd. said it has executed a $5 million financing commitment with Geneva-based investor Knightstown Business Ltd.
The company has already received the initial $500,000 tranche of the funding, and Knightstown has committed to provide a further $4.5 million over the next six months. The additional portion is subject to a definitive agreement and acceptance of the use of proceeds by the management team.
The first tranche was priced at $0.60 per share. That level was a 1.7% premium to the closing price of $0.59 on Jan. 27.
"We are very pleased to have secured a substantial financing commitment and an immediate $500,000 at terms that greatly limit share dilution," said Malcolm Stevens, chief executive officer of Spartan Gold, in a news release.
The company said it will immediately start full mining exploration activities on all three of its recently acquired gold prospects: Arbacoochee, Ala., Poker Flats in Carlin Trend, Nev., and Ziggurat in Northumberland Trend, Nev.
Spartan Gold is a Scottsdale, Ariz., junior gold exploration and mining company. Knightstown is a private venture capital fund and business angel investor.
| Issuer: | Spartan Gold Ltd.
|
| Issue: | Financing agreement
|
| Amount: | $5 million ($500,000 in first tranche)
|
| Expiration: | Six months
|
| Price: | $0.60 (first tranche)
|
| Announcement date: | Jan. 28
|
| Investor: | Knightstown Business Ltd.
|
| Stock symbol: | OTC Bulletin Board: SPAG
|
| Stock price: | $0.59 at close on Jan. 27
|
| Market capitalization: | $134.28 million
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
