Deal finances company’s exploration program on its Yukon properties
By Devika Patel
Knoxville, Tenn., March 23 – Goldstrike Resources Ltd. said it raised over C$1.5 million in a non-brokered private placement of units.
Goldstrike said it raised C$2.2 million in the offering on March 16. The company said on March 17 that some investors withdrew orders for C$1.7 million of the units unless the company added additional incentives or more favorable financial terms for the financing. As a result, the company postponed the placement.
The company sold flow-through units of one flow-through common share and one warrant at C$0.17 per unit and units of one common share and one warrant at C$0.13 per unit.
Each flow-through unit warrant will be exercisable at C$0.30 for two years. The strike price is a 114.29% premium to the company’s C$0.14 closing share price on March 15.
Each three-year unit warrant will be exercisable at C$0.25, a 78.57% premium to the March 15 closing share price.
Proceeds will be used for the company’s 2016 exploration and drilling program on its Yukon properties and general working capital.
Goldstrike is a gold exploration company based in Vancouver, B.C.
| Issuer: | Goldstrike Resources Ltd.
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| Issue: | Flow-through units of one flow-through common share and one warrant, units of one common share and one warrant
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| Amount: | Over C$1.5 million
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| Warrants: | One warrant per unit
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| Agent: | Non-brokered
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| Revised: | March 17
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| Settlement date: | March 23
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| Stock symbol: | TSX Venture: GSR
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| Stock price: | C$0.14 at close March 15
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| Market capitalization: | C$14.91 million
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| Flow-through units
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| Price: | C$0.17
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| Warrant expiration: | Two years
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| Warrant strike price: | C$0.30
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| Units
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| Price: | C$0.13
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| Warrant expiration: | Three years
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| Warrant strike price: | C$0.25
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