Gold Standard Ventures Corp. (GSV:TSX.V; GSV:NYSE) has arranged a non-brokered private placement of up to 5,121,950 common shares in the capital of the company at a price of CA$2.05 per share for gross proceeds of up to $10.5 million, reported the company in a news release.
"Goldcorp Inc. (G:TSX; GG:NYSE) has confirmed they will acquire 2,926,829 Shares in the Private Placement and will own approximately 35,325,291 Shares of Gold Standard representing approximately 13.60% of the Company's issued and outstanding Common Shares on a non-diluted basis following closing of the Private Placement (assuming an aggregate of 5,121,950 Shares are subscribed for under the Private Placement)," stated the company.
In addition, "OceanaGold Corp. (OGC:TSX; OGC:ASX) confirmed they will acquire 975,609 Shares in the Private Placement and will own approximately 40,459,161 Shares of Gold Standard representing approximately 15.58% of the Company's issued and outstanding Common Shares on a non-diluted basis following closing of the Private Placement."
The company stated that it may also conduct a non-brokered private placement with certain other investors of up to 1,219,512 shares at the offering price for gross proceeds of up to CA$2.5 million.
"The net proceeds of the Private Placement will be used for continued exploration and early-stage development at the Company's 100% owned Railroad-Pinion Project and for working capital purposes," the company announced.
"This participation is considered to be a 'related party transaction' as defined under 'Multilateral Instrument 61-101 Protection of Minority Securityholders in Special Transactions' (MI 61-101)," the company noted.
The private placement is to be exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as neither the fair market value of any shares issued to or the consideration paid by Goldcorp and OceanaGold will exceed 25% of the company's market capitalization.
"All Shares issued in connection with the Private Placement will be subject to a four-month and one day hold period under applicable securities laws," noted the company. "Closing of the Private Placement is subject to the approval of the Toronto Stock Exchange and the NYSE American LLC. Closing is expected to occur on or about September 5, 2018."
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