DMEHF - Desert Mountain Energy Closes $4000000 Private Placement
(TheNewswire)
October 14, 2020 - TheNewswire - Vancouver, British Columbia -- DESERT MOUNTAIN ENERGY CORP. (the"Company") (TSXV:DME ) , ( OTC:DMEHF ) , ( Frankfurt:QM01) is pleased to announce that it has closed itsnon-brokered private placement previously announced on 09/14/20 (the" Offering "), raising gross proceeds of CAD $4,000,000. Under theOffering the Company issued 2,500,000 units (the " Units ") at aprice of CAD $1.60 per Unit. Each Unit is made up of one common shareof the Company and one share purchase warrant (each, a" Warrant "), with each whole Warrant allowing the subscriber topurchase one additional common share for a period of two years at aprice of CAD $2.00. The expiry of the warrants may be accelerated atthe sole discretion of the Company by written notice or news releaseif the closing price for the Common Share on the TSX Venture Exchangeshall be equal to or greater than CAD $3.50 for a minimum of ten (10)consecutive trading days. Accordingly, the Company issued at total of2,500,000 Common Shares in the Offering as well as 2,500,000 wholewarrants.
The Company plans to use the proceeds for exploration,and development of the Company's helium processing facilities,required power generation facilities, working capital and generalcorporate expenses.
In connection with the Offering, the Company paid anaggregate finders fees of (seven) 7% percent of the total grossproceeds of the Offering in cash and/or equivalent in Units along with7% in finder warrants at the Offering price. All securities issued inconnection with the Offering will be subject to a customary 4-monthhold pursuant to applicable Canadian Securities Laws.
According to Robert Rohlfing, CEO of the Company,"we greatly appreciate the overwhelming support we have garneredfrom the investment community around the world. Particularlyconsidering the extremely challenging market environment."
Any securities referred to herein will not nor has beenoffered nor registered under the U.S. Securities act of 1933 (The"1933 ACT") and may not be offered or sold in the UnitedStates or to a person in the absence of such registration or anexemption from the registration requirements of the 1933 ACT. The TSXVenture Exchange and IIROC have not reviewed and does not acceptresponsibility for the adequacy or accuracy of the content of theinformation contained herein.
Desert Mountain Energy Corp. is a publicly traded exploration andresource company focused on the discovery and development of rareearth gas fields in the US. The Company is primarily looking forelements deemed critical to the green energy and high technologyindustries.
We seek safe harbor
"Robert Rohlfing"
Robert Rohlfing
Chairman & CEO
For more information, contact:
----------------------------------------- |Don Mosher, Vice President of Finance| | |(604) 617-5448 | | | | | |E-mail: Don@desertmountainenergy.com | | | | | | | | |---------------------------------------| | | |---------------------------------------| | | -----------------------------------------
Neither TSX Venture Exchange nor its RegulationServices Provider (as that term is defined in policies of the TSXVenture Exchange) accepts responsibility for the adequacy or accuracyof this release. The statements made in this press release maycontain certain forward-looking statements that involve a number ofrisks and uncertainties. Actual events or results may differ from theCompany's expectations.
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