(TheNewswire)
Vancouver, B.C. - TheNewswire - November 18, 2021 . Jayden Resources Inc. -("Jayden" or the “Company”) ( TSXV:JDN) announces that further to its newsreleases dated October 4 th and 12 th , 2021 whereinit announced a unit offering (“Offering”) of up to 8,000,000units ("Units") at a price of $0.50 per Unit for grossproceeds of up to $4,000,000, with each Unit being comprised of one(1) common share in the capital of Jayden (“Common Share”) and one-half (1/2) of one transferable Common Share purchasewarrant (“Warrant”) , each whole Warrant entitlingthe holder to purchase one (1) additional Common Share at a price of$0.80 for a period of two (2) years following the date ofclosing.
The Company will now increase the Offering to up to9,000,000 Units on the same terms, for gross proceeds of $4,500,000.As well, the Company will be paying a finder’s fee to brokersinvolved equal to 7% cash on the proceeds raised and 3.5% whole Warrants equal to the number ofUnits sold on the same exercise terms as the subscribers.
The Warrants will be subject to an acceleration clausewhereby, commencing on the date that is four months and one dayfollowing the closing date. Jayden may, in its sole discretion,provide notice to warrant holders to shorten the Warrant expiry dateto 30 days from the notice date if the daily volume weighted averageclosing price of Jayden’s shares is greater than $1.00 for the 10consecutive trading days preceding the notice date.
The Company anticipates that certain “relatedparties” of Jayden will participate in the Offering. Theparticipation in the Offering of such “related parties” willconstitute a “related party transaction” as defined underMultilateral Instrument 61-101, Protection of Minority SecurityHolders in Special Transactions (“MI 61-101”). The Offering willbe exempt from the formal valuation and minority shareholder approvalrequirements of MI 61-101. In particular, Jayden anticipates thatthe exemptions set out in paragraphs (a) and (b) in section 5.5 of MI61-101 are applicable since the aggregate consideration to be paid bythe related parties will not exceed 25% of the market capitalizationof Jayden and Jayden is not listed on the Toronto Stock Exchange, butonly on the TSX Venture Exchange. In addition, regarding theminority shareholder approval exemptions, the independent directorshave determined that the exemptions set out in paragraphs (1)(a) and(b) in section 5.7 of MI 61-101 are applicable in that the aggregateconsideration to be paid by the related parties will not exceed 25% ofthe market capitalization of Jayden , the distribution of thesecurities to the related parties will have a fair market value of notmore than $2,500,000 and Jayden is not listed on the Toronto StockExchange, but only on the TSX Venture Exchange.
The private placement is subject to TSX VentureExchange approval. The shares and units will be subject to afour-month-plus-one-day hold period from the date of issuance.Approximately $3.5M of the proceeds will be used to advance theCompany’s recently acquired Storm Lake Gold Property. The balance ofthe proceeds will be used for working capital purposes.
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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