New Financing & Management For Spanish Mountain
Spanish Mountain Gold Ltd. (TSX VENTURE:SPA) has announced that it has closed its private placement offering, previously announced on February 17, 2011.
Pursuant to the Offering, a total of 6,410,257 common shares of the Company (the “FT Shares”) were issued on a “flow-through” basis at a price of $0.78 per FT Share for gross proceeds of $5,000,000.
The proceeds of the private placement will be used to fund programs on the Company’s mineral properties in British Columbia, Canada. The Company has received final acceptance from the TSX Venture Exchange in connection with the Offering.
Pursuant to transactions which occurred subsequent to the closing of the Offering, Mr. Ian Watson, a director of the Company, acquired 1,142,857 of the FT Shares for approximately $600,000, representing approximately 17.83% of the Offering and 0.88% of the current issued and outstanding common shares of the Company (the “Shares”).
Mr. Watson now owns, directly and indirectly, a total of 13,454,497 Shares and also holds stock options to acquire up to 300,000 Shares and share purchase warrants to acquire up to 10,403,640 Shares (together, the “Convertible Securities”). Mr. Watson’s current shareholding represents approximately 10.31% of outstanding Shares (on a non-diluted basis). Should Mr. Watson also exercise his Convertible Securities, he will own 17.10% of the outstanding Shares on a partially diluted basis (i.e., assuming no other convertible securities are exercised).
The Company has paid total cash finder’s fee of $128,076.93 pursuant to the Offering. All of the securities issued under the Offering are subject to hold period which will expire on July 9, 2011 in accordance with applicable Canadian securities laws.
Management Team: The Company has also announced the appointment of Ian Watson as Chairman of the Company’s Board of Directors. Mr. Watson has been a director of the Company since September 2009.
The Company also reports that Judy Stoeterau, P. Geo. has been appointed Vice-President, Geology. Judy has over 30 years of experience in mineral exploration and corporate management, working on gold, base metal, uranium and diamond projects in Canada and South America. She has worked with both junior exploration companies and senior mining firms such as Falconbridge, Getty Minerals, Placer Dome and Cameco.
The Company believes that Judy’s comprehensive understanding of the operations of junior mineral exploration companies and her strong professional reputation in the industry are further enhancement to the Company’s management team. She will immediately focus on advancing and expanding the mineral potential of the Company’s properties. Judy replaces Stuart Morris. We thank Mr. Morris for his contributions to the Company.
The Company has granted incentive stock options to acquire an aggregate of 1,170,000 common shares of the Company to directors, officers and employees of the Company, at an exercise price of $0.65 per share, exercisable until March 9, 2016. The foregoing is subject to regulatory acceptance.
Spanish Mountain Gold Ltd is focused on the responsible development of its flagship Spanish Mountain gold project in southern central British Columbia, Canada. The Company has no debt and owns 100% of all four gold properties located in British Columbia.
Posted March 9, 2011
