Outcrop Gold Announces Closing Of $5.75 Million Private Placement Financing, Including a Strategic Investment by Eric Sprott
Summary
Each Warrant is exercisable to acquire one Common Share (a Warrant Share) at a price of $0.42 per Warrant Share for a period of 24 months from the closing of the Offering.The Company intends to use the net proceeds from the Offering primarily to advance exploration at the Companys Santa Ana project, and for general corporate purposes.Eric Sprott, through 2176423 Ontario Ltd. (2176423), a corporation which is beneficially owned by him, acquired 9,642,800 of the Units pursuant to the Offering. Accordingly, Mr. Sprott has undertaken that, unless approval of disinterested shareholders of the Company has been obtained and any other requirements of the TSX Venture Exchange (the TSXV) in such regard have been met, the Warrants acquired by 2176423 will only be exercised to the extent that the Warrant Shares issued upon such exercise would not result in him becoming a control person (as such term is defined in the policies of the TSXV) of the Company.The Units were acquired by Mr. Sprott, through 2176423, for investment purposes. This press release does not constitute an offer to sell or a solicitation to buy any securities in any jurisdiction.Outcrop is a hybrid prospect generator active in Colombia acquiring gold and silver exploration projects with world-class discovery potential. Outcrop performs its own grass roots exploration and then employs a joint venture business model on its projects to maximize investor exposure to discovery and minimize financial risk. Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made and they are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Outcrop to be materially different from those expressed or implied by such forward-looking statements or forward-looking information, including: the receipt of all necessary regulatory approvals, capital expenditures and other costs, financing and additional capital requirements, completion of due diligence, general economic, market and business conditions, new legislation, uncertainties resulting from potential delays or changes in plans, political uncertainties, and the state of the securities markets generally.