Delta, British Columbia, October 11, 2017, DESERT GOLD
VENTURES INC. (“Desert Gold” or the “Company”) (TSX.V: DAU /FF:
QXR2 /OTC: DAUGF) is pleased to
announce that it has closed the second and final tranche of its
non-brokered private placement (the “Final
Tranche”) raising aggregate gross proceeds of $340,000
through the issuance of 1,360,000 units (each a
“Unit”). Each Unit consists of one common
share and one share purchase warrant (the
“Warrant”). Each Warrant entitles the holder to
purchase one additional common share of the Company at a price of
CDN$0.30 per share for a period of five (5) years from the closing
of this Private Placement. Warrants will be subject to a thirty
(30) day acceleration clause upon announcement by the Company that
its shares have traded on a volume weighted average basis of
CDN$1.00 per common share, or more, for at least ten (10)
consecutive trading days.
In the first tranche, the Company issued 2,000,000 common shares
for gross proceeds of CDN$500,000, which together with the Final
Tranche raised total gross proceeds of CDN$840,000. The private
placement was oversubscribed by CDN$40,000.
Certain directors and officers of the Company acquired Units
under the Private Placement. Such participation is considered to be
a related party transaction as defined under Multilateral
Instrument 61-101 Protection of Minority Security Holders in
Special Transactions (“MI 61-101”). The
transaction will be exempt from the formal valuation and minority
shareholder approval requirements of MI 61-101 as neither the fair
market value of any securities issued to or the consideration paid
by such persons will exceed 25% of the Company’s market
capitalization.
In connection with closing the Final Tranche, the Company paid
finder’s fee consisting of a cash fee of $7,525 and 30,100
non-transferable brokers warrants. The brokers’ warrants are
exercisable at a price of $0.25 for a period of two years from
closing of the Private Placement.
The proceeds of the Final Tranche will be used for drilling and
fieldwork at the Company’s Farabantourou and Segala West projects
in Western Mali. All securities issued pursuant to the Final
Security will be subject to a hold period of four months and a
day.
ON BEHALF OF THE BOARD
“Jared Scharf”
Jared Scharf, President and Director
Desert Gold Ventures Inc.
+1 (858) 247-8195
For further information please visit our website www.desertgold.ca or information available on www.SEDAR.com under the Company’s profile.
Neither the 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. This news release does not
constitute an offer to sell
or a solicitation of an offer to buy the securities described
herein in the United States. The securities
described herein have not
been and will not be registered under the united states securities
act of 1933, as amended, and may not be offered or sold in the united states or to the
account or benefit of a U.S. person absent an exemption from the
registration requirements
of such act.