Mr. Rana Vig reports
BLUE LAGOON ANNOUNCES PRIVATE PLACEMENT
Blue Lagoon Resources Inc. has arranged a private placement offering of 2,202,000 flow-through units at a price of $1 per unit and 148,352 common shares at a price of 91 cents per share for aggregate gross proceeds to the company of $2,337,000. Each unit is composed of one flow-through common share of the company and one-half of one common share purchase warrant. Each whole warrant is exercisable into one common share of the company at an exercise price of $1.30 per share for a period of 36 months from the closing date. The offering is fully subscribed, and closing is scheduled for Nov. 23, 2020.
Proceeds of the private placement will be used for exploration activities on the company's Dome Mountain gold project and for general working capital purposes.
The company has agreed to pay a finder's fee in cash equal to 6 per cent of the gross proceeds from the sale of units to third parties sourced by the finders, as well as warrants to purchase that number of common shares of the company up to 7 per cent of the number of units sold to third parties sourced by the finders. The finders' warrants may be exercised to acquire common shares of the company at a price of $1.30 per common share for a period of 36 months from the date of closing.
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