DELTA, BC, Oct. 11, 2017
/CNW/ - 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.
SOURCE Desert Gold Ventures Inc.
