Origin Gold Announces Closing of First Tranche of Private Placement
TSX VENTURE: OIC
MONTREAL, March 15, 2019 (GLOBE NEWSWIRE) -- Origin Gold Corporation ("Origin or the “Corporation") (TSX VENTURE: OIC) is pleased to announce that it has closed the first tranche of a private placement (the “Placement”) with accredited investors as well as with insiders of Origin, by issuing a total of 3,530,000 units of Origin (the “Units”) at $0.10 per Unit, for total gross proceeds of $353,000. It is expected that Origin will complete a second tranche of the Placement on or before March 29th, 2019, by issuing up to an additional 2,470,000 units of Origin at $0.10 per unit, for additional gross proceeds of up to $247,000.
The Corporation plans to use the net proceeds from the Placement to fund exploration expenditures at the Corporation’s La Pantera project, as well as for other corporate purposes and general working capital.
Each Unit consists of one common share (a “Common Share”) and one-half of a common share purchase warrant (a “Warrant”) of Origin. Each Warrant entitles the holder to purchase one Common Share at a price of $0.15 during a two-year period following the issuance of the Warrant.
The securities issued pursuant to the Placement on the date hereof are subject to a four-month hold period under applicable securities laws in Canada expiring on July 16, 2019.
The first tranche of the Placement was carried out pursuant to prospectus exemptions of applicable securities laws and is subject to final acceptance by the TSX Venture Exchange. The Corporation paid a cash commission of $3,360 on a portion of the Placement.
Insiders of Origin subscribed for an aggregate of 650,000 Units for a gross proceeds of $65,000. Participation by insiders of the Corporation in the Placement is considered a "related party transaction" pursuant to Regulation 61-101 respecting Protection of Minority Security Holders in Special Transactions ("Regulation 61-101"). The Corporation is exempt from the requirements to obtain a formal valuation or minority shareholder approval in connection with the Insiders' participation in the Placement in reliance of sections 5.5(b) and 5.7(a) of Regulation 61-101.
Origin is a mineral exploration company with its exploration activities focused in Colombia.
The information set forth in this press release includes certain forward-looking statements. Such statements are based on assumptions exposed to major risks and uncertainties. Although Origin deems the expectations reflected in these forward-looking statements to be reasonable, the Corporation cannot provide any guarantee as to the materialization of the expectations reflected in these forward-looking statements. The Corporation expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) has reviewed or accepts responsibility for the adequacy or accuracy of this release.