Receive instant alerts for news on your actions. Claim your 1-week free trial for StreetInsider Premium here.


DO NOT DISTRIBUTE TO US NEWSWIRE SERVICES OR DISTRIBUTE IN THE UNITED STATES

VANCOUVER, BC / ACCESSWIRE / June 25, 2021 / Gold Springs Resource Corp. (TSX: GRC) (OTCQB: GRCAF) (the “Company“) is pleased to announce the closing on June 24, 2021 of an additional tranche (the”Additional slice“) its private placement of guaranteed rights without intermediary previously announced (the”Offer“). The closing of the Additional Tranche was for a total of $ 1,000,000 of Series A guaranteed rights of the Company (the”Guaranteed rights of series A“) and the Additional Tranche investor was also issued 1,000,000 common share purchase warrants (“Mandates“), each Warrant entitling its holder to purchase one common share of the Company for a period of two years from the closing date of the Additional Tranche at a price of CA $ 0.14 per share.

The proceeds of the placement will be used to finance a full exploration program (the “Resource expansion program“) to the Company’s Gold Springs project, located on the border of Nevada and Utah, in the United States (the”Gold Springs Project” or “Project“), which program has already started. The resource expansion program is designed to significantly expand the project’s gold and silver resources, drilling its many targets, and will also include the completion of an environmental impact assessment and the mining permitting process, a pre-feasibility study to support the expanded mineral resource estimate and extensive metallurgical test work. resources in an amount equal to at least 95% of the gross proceeds of the offering. If the Company’s drilling results are successful in supporting a mineral resource estimate of at least 3 million ounces of gold equivalent (gold and silver), the Company would focus on selling the Gold Springs Project to a third party (a “Exit the operation“).

For further details on the terms of the Series A Secured Rights, please refer to the Company’s press release dated April 20, 2021, which is available on SEDAR at www.sedar.com.

The securities offered have not been and will not be registered under the US Securities Act or any US state securities law, and may not be offered or sold in the United States or in, or for the for or for the benefit of, persons of the United States in the absence of registration or any applicable exemption from the registration requirements of the US Securities Act and applicable US securities laws. This press release does not constitute an offer to sell or the solicitation of an offer to buy securities in the United States or in any other jurisdiction.

The investor in the Additional Tranche is a director of the Company and is therefore a “related party” of the Company (as defined by Multilateral Instrument 61-101 – Protection of holders of minority securities in special transactions (“MI 61-101The Company relies on the exemptions from both the formal valuation requirement and the minority shareholder approval requirement under Sections 5.5 (a) and 5.7 (1) (a), respectively , of NI 61-101, on the grounds that neither the fair market value of the object of the transaction, nor the fair market value of the consideration for the transaction, to the extent that it involves the investor director, does not exceed 25 for cent of the market capitalization of the Company calculated in accordance with regulation MI 61-101 The Company has not filed a material change report more than 21 days before the scheduled closing date of the Additional Tranche of the Placement, because the Company has closed the Additional Tranche on an expedited basis in order to provide the required funding for its ongoing resource expansion program and to facilitate an Offer.

About Gold Springs Resource Corp.

Gold Springs Resource Corp. (TSX: GRC and OTCQB: GRCAF) focuses on exploration and expansion of gold and silver resources from its Gold Springs project at the PEA stadium located on the border of Nevada and Utah, United States . The Gold Springs project is located in the prolific Great Basin of the western United States, one of the best mining jurisdictions in the world.

Contact Gold Springs Resource Corp. :

Ruby Killian
Financial director
[email protected]
+1 (778) 801-1667

Forward-looking statements

Certain statements contained herein constitute “forward-looking information” under applicable Canadian securities laws (“forward-looking statements”). Forward-looking statements look to the future and provide an opinion on the effect of certain events and trends on the business. Forward-looking statements may include words such as “believe”, “would”, “will”, “estimate” and similar expressions.

All statements, other than statements of historical fact that deal with activities, events or developments that we believe, expect or anticipate, will occur or may occur in the future are forward-looking statements. These forward-looking statements reflect our current expectations or beliefs based on information currently available to us. Forward-looking statements contained in this press release include, without limitation, statements regarding the offering, use of the proceeds of the offering, the occurrence of an exit transaction, the anticipated expansion of gold and silver resources. and the Springs Project resource expansion program and the acquisition of the Gold Springs Project by an acquirer. Forward-looking statements are subject to a number of risks and uncertainties which may cause our actual results to differ materially from those discussed in the forward-looking statements and, even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences or effects on us. Factors that could cause actual results or events to differ materially from current expectations include, among others, uncertainties relating to the availability and cost of funds; additional closings of the Offer; uncertainties and risks related to the expansion of the Gold Springs project and the resource expansion program, potential risks and uncertainties related to the ultimate geographic spread of the novel coronavirus (COVID-19), the severity of the disease, the duration of the COVID-19 outbreak, the measures that may be taken by government authorities to contain the COVID-19 outbreak or to address its impact and the potential negative effects of COVID-19 on the global economy and financial markets ; and other risks relating to our business and the Offer. Any forward-looking statement speaks only as of the date on which it is made and, except as required by applicable securities laws, we disclaim any intention or obligation to update any forward-looking statement, whether thereafter. new information, events or future or other results. Although we believe that the assumptions inherent in forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and, therefore, one should not place undue reliance on such statements because of their inherent uncertainty.

SOURCE: Gold Springs Resource Corp.

See the source version on accesswire.com:
https://www.accesswire.com/653200/Gold-Springs-Resource-Corp-Announces-Closing-of-Additional-US1Million-Tranche-of-Secured-Rights



Source link

Leave a Reply

Your email address will not be published.