(TheNewswire)
Vancouver, B.C. - TheNewswire - December 1, 2021 . Jayden Resources Inc.,("Jayden" or the “Company”) ( TSXV:JDN) has closed a $0.50 unit offering(the “Offering”) as announced on October 18, 2021 and has issued atotal of 9,072,000 units ("Units") for gross proceeds of$4,536,000.
Each Unit consists of one (1) common share in thecapital of Jayden (“Common Share”) and one-half (1/2) of onetransferable Common Share purchase warrant (“Warrant”), each wholeWarrant entitling the holder to purchase one (1) additional CommonShare at a price of $0.80 for a period of two (2) years following thedate of closing.
The Warrants will be subject to an acceleration clausewhereby, commencing on the date that is four months and one dayfollowing the closing date (March 27, 2022), Jayden may, in its solediscretion, provide notice to warrant holders to shorten the Warrantexpiry date to 30 days from the notice date if the daily volumeweighted average closing price of Jayden’s shares is greater than$1.00 for the 10 consecutive trading days preceding the noticedate.
The participation in the Offering by an executiveofficer of Jayden may be considered a "related partytransaction" (the “Related Party”) as defined underMultilateral Instrument 61-101, Protection of Minority SecurityHolders in Special Transactions (“MI 61-101”). Jayden hasdetermined that exemptions from the formal valuation and minorityshareholder approval requirements under MI 61-101 are available. Inparticular, Jayden has determined that the exemptions set out inparagraphs (a) and (b) in section 5.5 of MI 61-101 are applicablesince the aggregate consideration to be paid by the Related Party doesnot exceed 25% of the market capitalization of Jayden and Jayden isnot listed on the Toronto Stock Exchange, but only on the TSX VentureExchange. In addition, regarding the minority shareholder approvalexemptions, the independent directors have determined that theexemptions set out in paragraphs (1)(a) and (b) in section 5.7 of MI61-101 are applicable in that the aggregate consideration to be paidby the Related Party does not exceed 25% of the market capitalizationof Jayden, the distribution of the securities to the Related Party hasa fair market value of not more than $2,500,000 and Jayden is notlisted on the Toronto Stock Exchange, but only on the TSX VentureExchange.
The Company also paid finder’s fees totaling $142,520in cash equal to 7% cash of the proceeds raised by the finders andissued a total of 142,520 whole finder’s Warrants equal to 3.5% of the number of Unitssold by the finders. The finder’s Warrants are exercisable on thesame terms as above and are subject to the acceleration clause.
The Common Shares and Warrants Shares if exercised aresubject to a four-month-plus-one-day hold period which will expire onMarch 27, 2022. Approximately $4M of the proceeds will be used toadvance the Company’s recently acquired Storm Lake Gold Property andthe balance of the proceeds will be used for working capitalpurposes.
For further information about this news release or theCompany visit our website at www.jaydenresources.com , email info@jaydenresources.com , orcall Mike Thast at 778-331-2093.
On Behalf of the Board:
"DavidEaton"
President and CEO
Neither TSX Venture Exchange nor itsRegulation Services Provider (as that term is defined in the policiesof the TSX Venture Exchange) accepts responsibility for the adequacyor accuracy of this release.
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