- DURANGO COMPLETES $2.8M FINANCING WITH A LEAD ORDER FROM PALISADES GOLDCORP
Ms. Marcy Kiesman reports
Durango Resources Inc. has closed a non-brokered private placement of 13.15 million flow-through units at a price of 12.25 cents per unit and 16.25 million non-flow-through units at a price of 7.5 cents per unit to raise gross proceeds of $2,829,625.
The Company received a lead order from a syndicate of strategic investors led by Palisades Goldcorp Ltd. to purchase 10,000,000 flow-through units. The flow-through units were sold on a charitable flow-through basis.
Each flow-through unit consists of one common share and one half warrant. Each full warrant entitles the holder to purchase an additional common share at a price of $0.15 until August 13, 2023. A total of 13,150,000 flow-through units were issued for gross proceeds of $1,610,875.00. The gross proceeds from the issuance of the flow-through shares will be used in Quebec for “Canadian exploration expenses” within the meaning of the Income Tax Act (Canada). All flow-through securities issued pursuant to the flow through placement (including any shares issued on the exercise of the warrants) are subject to a hold period expiring on December 15, 2020.
Each non flow-through unit consists of one common share and one half warrant. Each full warrant entitles the holder to purchase an additional common share at a price of $0.15 until August 16, 2023. A total of 16,250,000 non flow-through units were issued for gross proceeds of $1,218,750.00.
Durango will use the net proceeds from the non flow-through offering for general working capital and for exploration of its gold properties at Windfall Lake. All securities issued pursuant to the non flow through placement (including any shares issued on the exercise of the warrants) are subject to a hold period expiring on December 18, 2020.
Marcy Kiesman, CEO of Durango, comments: “We are so pleased to have completed this financing with a lead order from Palisades Goldcorp. After months of preparation and planning, our team is eager to commence our exploration program at Windfall Lake in the near future.”
Durango paid aggregate finders’ fees of $153,650.00 and 743,708 full broker warrants exercisable at $0.15 per share until August 13, 2023 in respect of the placements.
About Durango
Durango is a natural resources company engaged in the acquisition and exploration of mineral properties. The Company is positioned for discovery with a 100% interest in a strategically located group of properties in the Windfall Lake gold camp in the Abitibi region of Quebec , Canada.
About Palisades Goldcorp
Palisades Goldcorp is Canada’s new resource focused merchant bank. Palisades’ management team has a demonstrated track record of making money and is backed by many of the industry’s most notable financiers. With junior resource equities valued at generational lows, management believes the sector is on the cusp of a major bull market move. Palisades is positioning itself with significant stakes in undervalued companies and assets with the goal of generating superior returns.
Tags: #BTR, #DGO, #Gold, #OSK, #silver, Abitibi, EastBarry, Exploration, Osisko, Trove