Sego to close private placement by Feb. 4

Jan 23, 2020

2020-01-22 18:25 ET – News Release

Mr. J. Paul Stevenson reports

SEGO RESOURCES WILL CLOSE FINANCING ON OR BEFORE FEBRUARY 4, 2020

Sego Resources Inc. will close the financing previously announced on Nov. 28, 2019, and revised on Dec. 11, 2019. The Company closed the first tranche of the private placement for gross proceeds of $167,980 (see news release dated December 31, 2019) The Company would like to clarify that any Flow-Through Units (“FTU”) issued in the final tranche will be for a 2020 tax renunciation.

Each FTU unit consists of one common share and one share purchase warrant. Each FTU warrant entitles the holder to purchase an additional common share at $0.15 for two years from closing of the private placement. Each Non-Flow-Through Unit (“NFTU”) consists of one common share and one share purchase warrant. Each NFTU warrant entitles the holder to purchase an additional common share at $0.10 for two years from the closing of the private placement. The securities issued under the closing will be subject to the applicable statutory 4 month + one day hold period from the date of issuance.

The offering is open to all existing Sego shareholders and non-shareholders subject to certain limitations discussed below.

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 November 28, 2019 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. 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 units proposed to be issued is 15,400,000 units for gross proceeds of $1,000,000. 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.

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, BC. The non-flow through proceeds will be used for working capital and general corporate purposes.

We seek Safe Harbor.

https://www.segoresources.com/