Outcrop Gold receives $1-million investment from Sprott
2020-02-21 12:53 ET – News Release
Mr. Joseph Hebert reports
STRATEGIC INVESTOR ERIC SPROTT TAKES $1,000,000 STAKE IN OUTCROP GOLD
Outcrop Gold Corp., following the release of favourable drill results from its Santa Ana project, has received an investment from Eric Sprott through a non-brokered private placement financing, consisting of 10 million units at a price of 10 cents per unit for gross proceeds of $1-million. Each unit consists of one common share and one common share purchase warrant in the capital of the company. Each warrant is exercisable into one common share of the company at a price of 20 cents per common share expiring on Nov. 7, 2024.
As a result, Mr. Sprott through 2176423 Ontario Ltd., a corporation that is beneficially owned by him, will acquire 10 million common shares and 10 million share purchase warrants, representing 12.7 per cent of the issued and outstanding shares on a non-diluted basis, and 22.6 per cent on a partially diluted basis, assuming exercise of the warrants. Mr. Sprott did not beneficially own any securities in the company prior to this investment.
Closing of the placement remains subject to the approval of the TSX Venture Exchange.
The proceeds from the sale of the shares will be used primarily to finance exploration on the company’s Santa Ana project and for general working capital.
The units were acquired by Mr. Sprott for investment purposes and with a long-term view of the investment. Mr. Sprott may acquire additional securities of the company either on the open market or through private acquisitions, or sell securities of the company either on the open market or through private dispositions in the future, depending on market conditions, reformulation of plans and/or other relevant factors.
About Outcrop Gold Corp.
Outcrop is a gold prospect generator active in Colombia acquiring gold exploration projects with world-class discovery potential. Outcrop performs its own grassroots exploration and then employs a joint venture business model on its projects to maximize investor exposure to discovery and minimize financial risk.
We seek Safe Harbor.
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