Sanatana Resources Inc. (CVE:STA) said it has completed the second and final tranche of its non-brokered private placement of flow-through units of (FT Units) previously announced on December 3, 2020.
Together with the first tranche closing of this private placement, announced on December 10, 2020, a total of 4,800,000 FT Units were sold, for aggregate gross proceeds of $1,200,000.
In a statement, Peter Miles, Sanatana CEO, commented: "With the closing of this financing and the additional funds from the sale of the Watershed Royalty previously announced, Sanatana now has over $5,000,000 on hand. We look forward to our upcoming drill program at our Gold Rush project in Ontario and to further exploration of our projects in the Solomon Islands as soon as travel becomes possible."
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In the second tranche, Sanatana issued an aggregate 1,800,000 FT Units, at a price of $0.25 each, for aggregate gross proceeds of $450,000. Each FT Unit consisted of one flow-through common share and one-half of one share purchase warrant. Each warrant will entitle the holder to purchase one non-flow-through common share at a price of $0.35 each until December 17, 2022.
In connection with the private placement, Sanatana paid a cash fee of $7,000 and issued 28,000 non-transferable share purchase warrants under the terms of a finder's fee agreement between the company and a finder. Each finder warrant is exercisable for one common share in the capital of the company at an exercise price $0.35 each for a period expiring December 17, 2022.
The securities issued in connection with the private placement are subject to a statutory four-month hold period which expires on April 10, 2021 as to the first tranche completed on December 9, 2020, and on April 18, 2021, as to this second tranche completed on December 17, 2020.
The proceeds from the private placement will be used for mineral exploration and development of the Company's properties in Ontario.
Vancouver-based Sanatana Resources is a mineral exploration and development company with an experienced management team and board of directors.
Contact the author at jon.hopkins@proactiveinvestors.com
