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TORONTO, July 19, 2017 /CNW/ - Sandy Lake Gold Inc. ("Sandy Lake" or the "Company") (TSXV:SLAU) announces that it has closed a non-brokered private placement (the "Offering") pursuant to which it has issued an aggregate of 7,500,000 units ("Units") and 7,500,000 special warrants ("Special Warrants") at a price of $0.05 per Unit and $0.05 per Special Warrant to raise aggregate gross proceeds of $750,000.
Each Unit consists of one common share of the Company (a "Share") and one share purchase warrant (a "Warrant"), with each Warrant entitling the holder thereof to acquire one additional Share at an exercise price of $0.10 for a period of 24 months.
Mr. Patrick Sheridan has purchased 7,500,000 Special Warrants in the Offering. Each Special Warrant will automatically convert into one Unit without any additional payment or action by the holder on the date upon which the Company receives shareholder approval for Mr. Sheridan and his associates to become "control persons" of the Company (within the meaning of the regulations of the TSX Venture Exchange). The Company proposes to seek such shareholder approval at its next annual meeting of shareholders, by ordinary resolution of the disinterested shareholders. In the event that such shareholder approval is not approved at the Company's next annual shareholders meeting, the Special Warrants shall automatically convert into a loan repayable to Mr. Sheridan on demand, bearing interest at a rate of 8% per annum.
Insiders of the Company subscribed for an aggregate of 1,600,000 Units and 7,500,000 Special Warrants in the Offering. A material change report is being filed in connection with the insider participation in the financing less than 21 days in advance of closing of the financing, as the Company did not have prior confirmation of such participation.
All proceeds from the Offering shall be immediately available to the Company and used for exploration of property interests and general corporate purposes.
All of the securities issued and issuable in the Offering are subject to a statutory hold period expiring on November 20, 2017.
The Offering remains subject to the receipt of all applicable final regulatory approvals.
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 and / or accuracy of this release.
Forward Looking Statements – Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of Sandy Lake, including, but not limited to the failure to complete the Offering as currently proposed or at all, the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, dependence upon regulatory and shareholder approvals, the proposed use of proceeds of the Offering and exploration risk. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.
SOURCE Sandy Lake Gold Inc.
For further information: Dan Noone, Interim Chief Executive Officer, (416) 628-5904, Email: [email protected]