Sego Resources closes $869,385 financing

Feb 6, 2020

2020-02-05 17:18 ET – News Release

Mr. J. Paul Stevenson reports

SEGO RESOURCES CLOSES A TOTAL OF $869,385 TO FUND MINER MOUNTAIN DRILL PROGRAM

Sego Resources Inc. has closed the final tranche of a financing for total gross proceeds of $701,405 as part of the financing ($167,980 raised in tranche 1) previously announced on Nov. 28, 2019, revised on Dec. 11, 2019, and Dec. 30, 2019.

The total amount closed in the financing was $869,385.

Chief executive officer J. Paul Stevenson stated: “The company is now funded to drill the new high-grade copper-gold targets identified at Miner Mountain. We are excited to commence the program in February and look forward to a very active 2020 for the company.”

Pursuant to the private placement final tranche, Sego will issue in total 533,000 units at six cents per unit of flow-through units (FTUs) for gross proceeds of $31,980 and 13,388,500 units at five cents per unit for non-flow-through units (NFTUs) for gross proceeds of $669,425. A director of the company purchased two million NFTUs in this tranche.

Each FTU consists of one common share and one share purchase warrant. Each FTU warrant entitles the holder to purchase an additional common share at 15 cents for two years from closing of the private placement. Each NFTU consists 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 two years from the closing of the private placement. The securities issued under this second closing are subject to the applicable statutory four-month-and-one-day hold period from the date of issuance. The closing of this second tranche is subject to regulatory approval.

The proceeds will be expended on the continued exploration of the company’s Miner Mountain copper-gold alkalic porphyry project, located near Princeton, B.C., and for general working capital.

Certain finders’ fees are payable on a portion of the private placement and consist of 7 per cent in cash and 7 per cent in brokers’ warrants, each broker’s warrant entitling the holder to subscribe for additional NFTU for five cents for two years from the closing of this tranche of the private placement. FTU broker warrants will be for non-flow-through units for six cents for two years from the closing of this tranche of the private placement.

This offering is subject to the receipt of all necessary regulatory approvals, including the TSX Venture Exchange and other customary conditions. All of the securities sold pursuant to these offerings will be subject to a four-month hold period from the date of closing.

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/