Sego Resources arranges $405,000 FT financing

Oct 26, 2021

2021-10-26 14:37 ET – News Release

Mr. Paul Stevenson reports

SEGO RESOURCES ANNOUNCES FLOW-THROUGH FINANCING FOR UP TO $405,000

Sego Resources Inc. has proposed a flow-through financing for proceeds of up to $405,000.

Sego is proposing to raise up to $405,000 by way of a non-brokered private placement of up to 4,500,000 flow-through shares at $0.09 per share. The offering is open to all existing Sego shareholders and non-shareholders subject to certain limitations discussed below.

This private placement may close in several tranches and Insiders may participate in the placement. The proceeds will be expended on diamond drilling of the Company’s Southern gold zone at the Miner Mountain Copper-Gold Alkalic Porphyry project, near Princeton, BC.

Finder’s fees may be payable on all or a portion of the offering, and will consist of a cash fee of 7% and a Broker’s Warrant where applicable, entitling the broker to purchase for one common share for each warrant held for two years from the closing date of the offering at $0.09 per share.

This offering will be subject to the completion of formal documentation, receipt of all necessary regulatory approvals, including the TSX Venture Exchange and other customary conditions. All of the shares sold pursuant to the offering will be subject to a four-month plus one day hold period from the date of closing.

The offering is open to all existing shareholders of the Company and all interested investors, provided that a prospectus exemption is available for the Company to issue shares to such investors. For existing shareholders who as of the close of business on October 26, 2021 held common shares of the Company and continue to hold common shares at the time of closing, an additional prospectus exemption is available pursuant to British Columbia Instrument 45-534 (and in similar instruments in other Provinces of Canada). Unless such shareholder is a person that has obtained advice regarding the suitability of the investment and, if such shareholder is resident in a jurisdiction of Canada, that advice has been obtained from a person that is registered as an investment dealer in such jurisdiction, the aggregate subscription cost to such shareholder for the shares subscribed under the Existing Shareholder Exemption cannot exceed $15,000 or 166,667 shares.

The Company also plans to utilize British Columbia Instrument 45-536 which opens private placements to non-accredited investors provided the purchaser has obtained advice regarding the suitability of the investment and that advice has been obtained from a person that is registered as an investment dealer in the jurisdiction. Completion of the private placement is subject to the TSX Venture Exchange approval.

There is no minimum offering size for the private placement and the maximum number of shares proposed to be issued is 4,500,000 shares for gross proceeds of $405,000. The Company fully expects to spend the funds as stated; there may be circumstances, for sound business reasons, where a reallocation of funds may be necessary.

There is no material change about the issuer that has not been generally disclosed.

We seek Safe Harbor.

https://www.segoresources.com/