TSXV: GGI
OTC: GGIFF
Frankfurt: RQM
VANCOUVER, Oct. 2, 2017 /CNW/ - Garibaldi Resources (TSX.V:
GGI) (the "Company" or "Garibaldi") is pleased to confirm closing
of the first tranche of the Company's recently announced
$6 million private placement (see
September 26, 2017 news
release). The second and final tranche will close
imminently.
Gross proceeds from the first tranche total $2,502,970 with all hard dollar and flow-through
units subscribed for by Eric Sprott
and 2176423 Ontario Ltd., respectively, a corporation beneficially
owned by Mr. Sprott.
Steve Regoci, Garibaldi President
and CEO, commented: "Eric
Sprott is one of the most significant and accomplished
investment leaders in the global resource sector. On behalf
of all Garibaldi shareholders, we welcome his support in our drive
to make the E&L Nickel Mountain Project near Eskay Creek the
next major discovery in northwest British
Columbia's prolific Golden Triangle."
First Tranche Details
Garibaldi issued 1,406,500 units at $0.82 per unit with each unit consisting of one
common share of the Company and one share purchase warrant
exercisable at a price of $1.05 per
share for a period of two years. Garibaldi also issued an
additional 1,467,000 flow-through units at $0.92 per unit with these units 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 this first closing, non-flow-through and
flow-through, are subject to a 4-month hold period from the date of
issuance.
As a result of the closing of this first tranche, Eric Sprott beneficially owns and controls
9,284,593 common shares of Garibaldi and 3,951,593 share purchase
warrants representing approximately 10.7% of the issued and
outstanding common shares of the Company on a non-diluted basis and
14.6% on a partially diluted basis. Prior to this first
closing, Mr. Sprott beneficially owned and controlled 6,411,093
common shares of Garibaldi and 1,811,593 share purchase warrants
representing approximately 7.7% of the issued and outstanding
common shares of the Company on a non-diluted basis and 9.6% on a
partially diluted basis.
The Garibaldi non-flow-through and flow-through units were
acquired by Mr. Sprott and 2176423 Ontario Ltd., respectively, for
investment purposes. Mr. Sprott has a long-term view of the
investment and may acquire additional securities of the Company
either on the open market or through private acquisitions or sell
securities of the Company either on the open market or through
private dispositions in the future depending on market conditions,
reformulation of plans and/or other relevant factors. A copy
of Mr. Sprott's early warning report will appear on the Company's
profile on SEDAR and may also be obtained by calling (416) 362-7172
(200 Bay Street, Suite 2600, Royal Bank Plaza, South Tower,
Toronto, Ontario, M5J 2J2).
Use of Proceeds
Proceeds from the flow-through portion of this first tranche
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. The financing will include
finder's fee commissions and is subject to final TSX Venture
approval.
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.
We seek safe harbor.
GARIBALDI RESOURCES CORP.
Per: "Steve Regoci"
Steve Regoci, President
Neither the TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or the accuracy of this release.
SOURCE Garibaldi Resources Corp.