VANCOUVER, Oct. 4, 2017 /CNW/ - Garibaldi Resources (TSX.V: GGI) (the "Company" or "Garibaldi") is pleased to confirm closing of the final tranche of the Company's recently announced $6 million private placement (see September 26, 2017 news release).
Gross proceeds from the final tranche total $3,497,120 with hard dollar and flow-through units fully subscribed for by institutional resource funds.
Steve Regoci, Garibaldi President and CEO, commented: "We're grateful for the financial vote of confidence by Eric Sprott and institutional funds in the exciting developments at our 100%-owned E&L Nickel Mountain Project near Eskay Creek. We accelerated the program last month, as stated in our September 1 news release, and aggressive drilling continues. We look forward to providing investors with a detailed exploration update in the very near future."
Final Tranche Details
Garibaldi issued 1,216,000 units at $0.82 per unit with each unit consisting of one common share of the Company and one full share purchase warrant exercisable at a price of $1.05 per share for a period of two years. Garibaldi also issued an additional 2,717,391 flow-through units at $0.92 per unit with each unit consisting of one common share of the Company and one half of one share purchase warrant exercisable at a price of $1.05 per share for a period of two years. All units from the private placement, non-flow-through and flow-through, are subject to a 4-month hold period from the date of issuance. This tranche included a finder's fee totaling $248,552.56, paid to EMD financial Inc. The $6 million financing is subject to final TSX Venture approval.
Use of Proceeds
Proceeds from the flow-through portion will be used to advance the E&L Nickel Mountain Project and other Garibaldi properties in the Eskay Camp and elsewhere in British Columbia. Proceeds from the non-flow-through financing are intended to advance the Company's gold and silver properties in Mexico, and for general working capital purposes.
About Garibaldi
Garibaldi Resources Corp. is an active Canadian-based junior exploration company focused on creating shareholder value through discoveries and strategic development of its assets in some of the most prolific mining regions in Mexico and British Columbia.
