DMEHF - Desert Mountain Energy Closes $9125000 Private Placement
(TheNewswire)
October 02, 2020 - TheNewswire - Vancouver, BritishColumbia - DESERT MOUNTAINENERGY CORP. (the "Company") (TSX V: DME ) ( OTC: DMEHF ) ( Frankfurt: QM01) is pleased to announce thatit has closed it's non-brokered private placement previously announcedon 09/11/20 (the " Offering "), raising gross proceeds of CAD$9,124,899. Under the Offering the Company issued 5,703,062 units(the Units ") at a price of CAD $1.60 per Unit. Each Unit iscomprised on one common share 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 if the closingprice for the Common Share on the TSX Venture Exchange shall be equalto or greater than CAD $3.50 for a minimum of ten (10) consecutivetrading days. Accordingly, the Company issued at total of 5,703,062Common Shares in the Offering as well as 5,703,062 whole Warrants.
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 (five) 5% percent in cash and or equivalentin units, along with 3% in finder warrants, exercisable at a price of$2.00 per share for a period of two years from closing, on a portionof the Offering. All securities issued in connection with theOffering will be subject to a customary 4-month hold pursuant toapplicable Canadian Securities Laws.
This private placement contains related partytransactions. These transactions are exempt from the valuation andshareholder exemption requirements of Multilateral Instrument 61-101pursuant to, in addition to other sections, ss.5.5(a) and 5.7(1)(a)respectively of that instrument. A material change report was notfiled prior to Closing of this placement due to the uncertainty ofknowing, in advance, in addition to other potential changes, when andif the placement would close, if final TSXV approval would be obtainedor if the material details related to the placement and relatedparties taking part would change.
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 havebeen offered 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.
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 | | | | | | | | |---------------------------------------| | | |---------------------------------------| | | -----------------------------------------
The TSX Venture Exchange has not reviewed and does notaccept responsibility for the adequacy or accuracy of the content ofthe information contained herein. The statements made in this pressrelease may contain certain forward-looking statements that involve anumber of risks and uncertainties. Actual events or results maydiffer from the Company's expectations .
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