BCGOLD CORP. CLOSES PERUVIAN TRANSACTION AND 2ND TRANCHE OF PRIVATE PLACEMENT
BCGold Corp.(BCG.V) has received TSX Venture Exchange approval of, and has closed, its Peru transaction, previously announced on April 14 and subsequently amended on April 20, 2016. Furthermore, the company is pleased to announce that it has closed a second tranche of its $750,000 private placement (an underlying condition for the Peru transaction), which was increased to $1-million on July 19, 2016.
The Peru transaction constitutes a fundamental acquisition under the policies of the TSX-V and as such, the company’s stock was halted immediately after announcement until the company provided certain filings with the TSX-V. BCGold is pleased to announce that these filings have been provided and approved by the exchange, and that BCGold’s securities will recommence trading at the open on Aug. 5, 2016.
Second tranche of private placement closed
In addition to a first tranche of $286,000 closed on April 28, 2016, the company has raised $465,000 in a second tranche, for a total of $751,000, through the issuance of 9.3 million units priced at five cents per unit. Each unit consists of one common share and one common share purchase warrant. Each warrant entitles the holder to purchase one additional common share at a price of 10 cents per share for up to two years, expiring on Aug. 3, 2018. The company paid finder’s fees of $30,000 and issued 600,000 finder warrants, each of which entitles the holder to purchase one BCGold common share at a price of five cents per share for up to one year, expiring on Aug. 3, 2017. The company expects to fill and close the remainder of the $1-million private placement in the very near term.
All securities are subject to a four-month hold period expiring on Dec. 4, 2016. As the company has previously advised, of the gross proceeds of the private placement, approximately $200,000 will be used to pay the costs associated with the closing of the Peru transaction and the remainder will be applied to advance the Chanape and Pucacorral properties.