Sego Resources closes $714,510 1st tranche of financing

Jun 8, 2018

2018-06-07 15:43 ET – News Release

Mr. Paul Stevenson reports

SEGO RESOURCES CLOSES FIRST TRANCHE OF FINANCING AND INITIATES NEW DRILLING PROGRAM

Sego Resources Inc. has applied to the TSX Venture Exchange to close the first tranche of a new financing for total gross proceeds of $714,510 as part of the financing announced on April 23, 2018.

In the first closing of the financing, Sego Resources will issue 5.85 million units at five cents per unit of flow-through units (FTU) for gross proceeds of $292,500 and 8,440,200 units at five cents per unit of non-flow-through units (NFTU) for gross proceeds of $422,010. This issuance is subject to regulatory approval. Each FTU unit consists of one common share and one-half of one share purchase warrant. Each full FTU warrant entitles the holder to purchase an additional common share at 10 cents for two years from the date of closing of the first tranche of the private placement. Each NFTU consisted of one common share and one share purchase warrant. Each NFTU warrant entitles the holder to purchase an additional common share at 10 cents for four years from the date of closing of the first tranche of the private placement. The securities issued under this first closing are subject to the applicable statutory four-month-plus-one-day hold period from the date of issuance. Directors and senior officers of the company have subscribed for FTU and NFTU in the first tranche of this financing totalling $290,510.

Finders’ fees will be payable on a portion of the private placement and will consist of 7 per cent cash and 7 per cent broker warrants. Each broker warrant entitles the holder to subscribe for additional NFTU or FTU, as the case may be, at five cents for two years from the date of closing of the first tranche of the private placement.

The flow-through proceeds will be expended on the continued exploration of the company’s Miner Mountain copper-gold alkalic porphyry project located near Princeton, B.C. The non-flow-through proceeds will be used for working capital and general corporate purposes. It is expected by the company and its driller that the drilling program will begin at Miner Mountain on or about June 16, 2018. The company fully expects to spend the funds as stated. However, there may be circumstances, for sound business reasons, where a reallocation of funds may be necessary.

The company has applied to the TSX Venture Exchange for an additional 45-day extension to complete a further tranche of this private placement. The offering is open to all existing Sego Resources shareholders and non-shareholders, subject to the following limitations.

This offering is subject to the completion of formal documentation, receipt of all necessary regulatory approvals, including the TSX-V, and other customary conditions.

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 units to such investors. For existing shareholders, who as of the close of business on April 23, 2018, 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 units subscribed under the existing shareholder exemption cannot exceed $15,000 or 300,000 units.

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.

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

We seek Safe Harbor.

http://www.segoresources.com/category/rns/