StrikePoint completes $1.95m private placement

27th July 2020 By: Donna Slater - Creamer Media Staff Writer and Photographer

TSX-V-listed gold and silver exploration company StrikePoint Gold Incorporated has completed a nonbrokered private placement financing to a single subscriber, Eric Sprott, raising gross proceeds of $1.95-million through the issuance of up to 23-million units at a price of $0.085 apiece.

Each unit comprises one common share of the company and one-half share purchase warrant with each whole warrant, entitling the holder to acquire an additional common share of the company at a price of $0.12 apiece, for a period of 24 months from the date of closing.

Sprott, through 2176423 Ontario – a corporation that is beneficially owned by him – acquired 23-million units pursuant to the private placement for a total consideration of $1.95-million.

Subsequent to the private placement, Sprott beneficially owns or controls 29.84-million shares of the company and 11.5-million warrants, representing about 19.6% of the issued and outstanding shares of Strikepoint, on a nondiluted basis.

He also owns or controls about 25.2% of the issued and outstanding shares of the company on a partially diluted basis, assuming exercise of the warrants acquired and forming part of the units.