Viva Gold closes $359,150 second tranche of financing
2019-08-06 16:52 ET – News Release
Mr. James Hesketh reports
VIVA GOLD CORP CLOSES PRIVATE PLACEMENT
Viva Gold Corp. has closed the second and final tranche of its non-brokered private placement announced on April 3, 2019. In connection with the closing of the second tranche, the company issued 1,197,168 units at a price of 30 cents per unit for gross proceeds of $359,150. In total, the company issued 3,395,502 units in both tranches of the offering for gross proceeds of $1,018,650.60.
Each unit consists of one common share in the capital of the company and one whole transferable common share purchase warrant. Each whole warrant is exercisable to acquire one share at an exercise price of 40 cents per share. Warrants issued in the first tranche are exercisable until July 3, 2021, and those warrants issued in the second tranche are exercisable until Aug. 6, 2021, both of which are 24 months from the date of issuance. Eighteen placees subscribed to the offering in the second tranche, with a total of 39 placees subscribing in both tranches of the offering.
Insiders of the company acquired an aggregate of 50,000 units in the second tranche offering, which participation constituted a “related party transaction,” as defined under Multilateral Instrument 61-101 — Protection of Minority Security Holders in Special Transactions. Such participation is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101, as neither the fair market value of the units acquired by the insiders nor the consideration for the units paid by such insiders exceeds 25 per cent of the company’s market capitalization.
The proceeds of the offering will be used: to perform drilling and metallurgical testwork at the issuer’s Tonopah property; and for general working capital purposes.
The company will pay aggregate finders’ fees on the second tranche of $8,400 in connection with subscriptions introduced to the offering by Canaccord Genuity Corp.
The securities issued under the offering, as well as any shares that may be issuable on exercise of any such securities, will be subject to a statutory hold period expiring four months and one day from the date of issuance of such securities.
About Viva Gold Corp.
Viva Gold is a gold exploration and development company with a focus on Nevada. Viva holds 100 per cent of the Tonopah gold project, a large land position with significant exploration potential and demonstrated measured, indicated and inferred gold resources. The property is located on the prolific Walker Lane trend in Nevada, 50 kilometres southeast of the Round Mountain mine of Kinross Gold and 30 kilometres from the town of Tonopah. Viva’s management team has extensive experience in mining exploration, development and production, and is supported by a board of directors and advisers comprising proven mine finders, deal makers and financiers.
We seek Safe Harbor.
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