(TheNewswire)
February 17, 2021 – TheNewswire - Vancouver, Canada – Guyana GoldstrikeInc. (the “Company” or “Guyana Goldstrike”)(TSXV:GYA ) , ( OTC:GYNAF ) , ( FSE:1ZT ) is pleased toannounce that it has completed an initial tranche of a non-brokeredprivate placement (the “ Placement ”) of 13,020,000 units (each, a“ Unit ”) at a price of $0.10 per Unit for gross proceeds of$1,302,000. Each Unit consists of one common share of the Company, and one common sharepurchase warrant exercisable to acquire an additional common share ata price of $0.15 for a period of thirty- sixmonths following the close of the Placement. All securities issuedin connection with the Placement are subject to a statutory holdperiod until June 13, 2021.
The Placement included an investment by Gold MountainsAsset Management Limited (“ GMA ”), a wholly-owned subsidiary of ZijinMining Group, on behalf of Zijin Global Fund (“ Zijin Global ”) . Followingcompletion of the Placement, GMA has control of 4,060,000 commonshares of the Company, representing approximately 16.4% of theCompany’s current issued and outstanding common shares, and1,500,000 common share purchase warrants. Ownership of the commonshares and warrants is held by Zijin Global and Zijin MidasExploration Fund. GMA would have control of 5,560,000 common sharesof the Company, representing approximately 22.5% of the then issuedand outstanding common shares of the Company, assuming exercise ofonly the warrants controlled by GMA.
The securities were acquired by GMA for investmentpurposes, on behalf of Zijin Global and Zijin Midas Exploration Fund.In the future, additional securities of the Company may be acquired ordisposed of by GMA, on behalf of Zijin Global and Zijin MidasExploration Fund, through the market, privately or otherwise, ascircumstances or market conditions may warrant.
Proceeds from the Placement will be used to payliabilities, accounts payable, and for general working capital. TheCompany intends to complete a further tranche of the Placement throughthe offering of up to 17,500,000 additional Units.
In connection with the Placement, arms-length agentsreceived an aggregate cash fee of $1,600. In addition, the Companyissued to agents 16,000 broker warrants (the “ Broker Warrants ”).Each Broker Warrant will entitle the holder thereof to purchase oneCommon Share at an exercise price equal to $0.15 for a period ofthirty-six months following the closing of the Placement.
Certain insiders of the Company acquired 460,000 Unitsin the Placement. This participation by insiders in the Placementconstitute a "related party transaction" as defined underMultilateral Instrument 61-101 Protection of Minority Security Holders in SpecialTransactions (“ MI 61-101 ”) . However, the Company considers such participation would beexempt from the formal valuation and minority shareholder approvalrequirements of MI 61-101 as neither the fair market value of theUnits subscribed for by the insiders, nor the consideration for theUnits paid by such insiders, exceeds 25% of the Company's marketcapitalization.
For further information, interested parties areencouraged to visit the Company’s website www.guyanagoldstrike.com andthe Company’s profile on SEDAR ( www.sedar.com ) or contact the Companyby telephone at 1.877.844.4661 or email info@guyanagoldstrike.com .
On behalf of the Board of Directors of
GUYANA GOLDSTRIKE INC.
Peter Berdusco
President and Chief Executive Officer
Neither the TSX Venture Exchange norits Regulation Services Provider (as that term is defined in thepolicies of the TSX Venture Exchange) accepts responsibility for theadequacy or accuracy of this release.
This news release may containcertain “Forward-Looking Statements” within the meaning of theUnited States Private Securities Litigation Reform Act of 1995 andapplicable Canadian securities laws. When used in this news release,the words “anticipate”, “believe”, “estimate”,“expect”, “target, “plan”, “forecast”, “may”,“schedule” and other similar words or expressions identifyforward-looking statements or information. These forward-lookingstatements or information may relate to future prices of commodities,accuracy of mineral or resource exploration activity, reserves orresources, regulatory or government requirements or approvals, thereliability of third party information, continued access to mineralproperties or infrastructure, fluctuations in the market for gold,changes in exploration costs and government regulation in Guyana,status of artisanal mining activities and associated rights, and otherfactors or information. Such statements represent the Company’scurrent views with respect to future events and are necessarily basedupon a number of assumptions and estimates that, while consideredreasonable by the Company, are inherently subject to significantbusiness, economic, competitive, political and social risks,contingencies and uncertainties. Many factors, both known andunknown, could cause results, performance or achievements to bematerially different from the results, performance or achievementsthat are or may be expressed or implied by such forward-lookingstatements. The Company does not intend, and does not assume anyobligation, to update these forward-looking statements or informationto reflect changes in assumptions or changes in circumstances or anyother events affections such statements and information other than asrequired by applicable laws, rules and regulations.
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