Scorpio Gold Corporation (“
Scorpio Gold” or the
“
Company”) (TSXV: SGN) is pleased to announce it
has closed the first tranche of a C$6 million offering as announced
on August 31, 2020 and September 2, 2020.
Of the C$6 million financing, C$4.6 million has
been placed with Augusta Investments Inc. (“Augusta”),
a Canada-US based mining sector-focused management group led
by its founder and Chairman, Richard Warke. An additional C$1
million has been placed with Palisades Goldcorp Ltd., a Canadian
resource-focused merchant bank.
Scorpio Gold’s CEO, Brian Lock, comments, “The
interest demonstrated by sophisticated investors such as the
Augusta Group and Palisades Goldcorp is a clear vote of confidence
in Scorpio Gold’s assets and in the direction the Company is
taking. At Mineral Ridge, the earn-in agreement with Titan Mining
will deliver an aggressive exploration program to build on our
substantial mineral reserve and resource base. Gold extraction
operations will continue at Mineral Ridge through December 31,
2021, ensuring Scorpio’s operating team stays intact and will
assist Titan where needed. At Goldwedge, the proceeds of the
private placement will fund and drive an extensive exploration
program at the Goldwedge Mine, the Keystone-Jumbo deposit area and
the soon to be acquired, adjacent Kinross Manhattan property. An
underground delineation drilling program is in progress at the
Goldwedge Mine and planning for surface drilling on high-priority
targets over the entire land package is underway.”
The first tranche closed on September 14, 2020
on $4,443,000 by the issue of 27,768,500 common shares and
37,500,000 share purchase warrants. Scorpio paid a finder’s fee of
$50,000 in connection with the Palisades Gold Corp portion.
The second tranche of $1,557,000 by the issue of
the remaining 9,731,250 common shares to Augusta, will close on
receipt of shareholder approval of a change of control and the
earn-in option agreement with Titan Mining Corporation on the
Mineral Ridge project described below. The annual general and
special meeting of shareholders is being held October 2, 2020.
Each unit consists of one common share of the
Company and one share purchase warrant with each warrant
exercisable for three years from the date of issue at an exercise
price of $0.24.
All securities issued and issuable are subject
to a hold period in Canada expiring on January 15, 2021.
Stock Options:
Scorpio Gold further reports that the directors
granted a total of 3,815,000 incentive stock options of the capital
stock of the Company to directors, officers, employees and
consultants exercisable for up to a five year period at an exercise
price of $0.165, being the closing share price on September 11,
2020, pursuant to Scorpio Gold’s shareholder approved stock option
plan.
About Scorpio Gold
Scorpio Gold holds a 100% interest in the
advanced exploration-stage Goldwedge property in Manhattan, Nevada
with a fully permitted underground mine and a 400 ton per day mill
facility. On July 20, 2020, the Company announced the terms of an
exclusive purchase option to acquire a 100% interest of the
Manhattan Property situated adjacent and proximal to the Goldwedge
property, from a subsidiary of Kinross Gold
In addition, as announced on August 31, 2020,
Scorpio Gold entered into an earn-in option agreement with Titan
Mining Corporation whereby Titan can earn an 80% joint venture
interest on the Company’s 100% owned Mineral Ridge gold project
located in Esmeralda County, Nevada. To maintain the option
Titan must spend a total of US$35 million over a staged period of
five years. If Titan spends the initial US$7 million of
expenditures by January 1, 2022, it will also have the right to
acquire a 100% interest by paying Scorpio Gold US$35 million on or
before December 31, 2022. The effectiveness of the earn-in option
agreement remains subject to receipt of the approval of the
shareholders of Scorpio Gold pursuant to a special resolution to be
put forward at the upcoming annual general and special meeting
called for October 2, 2020.
This news release is intended for distribution
in Canada only and is not intended for distribution to United
States newswire services or dissemination in the United States.
This news release does not constitute an offer to sell or a
solicitation of an offer to buy any of the Shares or Warrants (the
“Securities”) in the United States or to, or for the account or
benefit of, any U.S. person. The Securities have not been and
will not be registered under the United States Securities Act of
1933, as amended (the “U.S. Securities Act”), or any securities
laws of any state of the United States and may not be offered or
sold within the United States or to, or for the account or benefit
of, any U.S. person unless an exemption from such registration
requirements is available. “United States” and “U.S. person”
are as defined in Regulation S under the U.S. Securities Act.
ON BEHALF OF THE
BOARDSCORPIO GOLD CORPORATION Brian Lock,
CEO For further information contact:
Brian Lock Tel: (604) 889-2543Email:
block@scorpiogold.com
Anthony SimoneTel: (416) 881-5154Email:
ir@scorpiogold.com
Website: www.scorpiogold.com
Neither TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
The Company relies on litigation protection for
forward-looking statements. This news release contains
forward-looking statements that are based on the Company’s current
expectations and estimates. Forward-looking statements are
frequently characterized by words such as “plan”, “expect”,
“project”, “intend”, “believe”, “anticipate”, “estimate”,
“suggest”, “indicate” and other similar words or statements that
certain events or conditions “may” or “will” occur, and include,
without limitation, statements regarding the effectiveness of the
Agreement, the closing and planned use of proceeds of the Private
Placement, receipt of the regulatory and shareholder approvals
discussed in this press release, the potential exercise of the
Earn-in Option or the Purchase Option, and the Company’s plans with
respect to exploration, development and exploitation at its
Goldwedge projects. Such forward-looking statements involve known
and unknown risks, uncertainties and other factors that could cause
actual events or results to differ materially from estimated or
anticipated events or results implied or expressed in such
forward-looking statements, including risks involved in mineral
exploration and development programs, risks involved in mineral
processing and those risk factors outlined in the Company’s
Management Discussion and Analysis as filed on SEDAR. Any
forward-looking statement speaks only as of the date on which it is
made and, except as may be required by applicable securities laws,
the Company disclaims any intent or obligation to update any
forward-looking statement, whether as a result of new information,
future events or results or otherwise. Forward-looking statements
are not guarantees of future performance and accordingly undue
reliance should not be put on such statements due to the inherent
uncertainty thereof.
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