Strikepoint Gold closes $3.11-million private placement

Executive Summary

• Strikepoint Gold Inc. has closed a non-brokered private placement under the Listed Issuer Financing Exemption (LIFE), raising gross proceeds of C$3,119,619.
• The company issued 20,797,460 units at a price of C$0.15 per unit, with net proceeds allocated to exploration at its Hercules and Cuprite gold projects in Nevada and general working capital.
• The transaction included insider subscriptions totaling C$29,919 and involved the payment of finders' fees and issuance of finder warrants.

Key Details

• Gross Proceeds: C$3,119,619.
• Units Issued: 20,797,460 units.
• Price Per Unit: C$0.15.
• Unit Composition: Each unit consists of one common share and one common share purchase warrant.
• Warrant Terms (Investors): Each warrant entitles the holder to purchase one common share at an exercise price of C$0.30.
• Warrant Expiration (Investors): November 18, 2027.
• Hold Period: No hold period on units under Canadian securities laws; however, warrants are not exercisable for 60 days after the date of issue.
• Finders' Fees: Total cash fees of $161,416.50 paid.
• Finder Warrants: 1,076,110 non-transferable warrants issued to finders.
• Finder Warrant Terms: Exercise price of C$0.30 per share, expiring November 18, 2027.
• Finder Warrant Hold Period: Subject to a statutory hold period expiring four months and one day from the date of closing.
• Insider Subscriptions: Insiders subscribed for 199,460 units for aggregate gross proceeds of $29,919.
• Related Party Transaction: Insider participation is considered a related party transaction under Multilateral Instrument 61-101; exemptions from formal valuation and minority shareholder approval were relied upon as participation did not exceed 25% of market capitalization.
• Use of Proceeds: Exploration activities at the Hercules gold project and Cuprite gold project (Nevada), plus general working capital.
• Regulatory Status: Closing subject to approval of the TSX-V.

Notable Quotes

• No direct quotes from management were included in the provided text.