Signature Resources closes C$609,000 private placement

Signature Resources Ltd. (TSXV: SGU) (OTCQB: SGGTF) (FSE: 3S30) has closed a non-brokered private placement, issuing 11,311,111 flow-through units and 2,500,000 non-flow-through units for gross proceeds of C$609,000, according to a company statement.

Flow-through units were priced at C$0.045 each, while non-flow-through units were priced at C$0.04 each. Each unit consists of one common share and one-half of one common share purchase warrant. Each whole warrant entitles the holder to acquire one additional common share at C$0.08 per share for 12 months from the date of issuance.

In total, the company is issuing 13,811,111 common shares and 6,905,555 warrants. All securities are subject to a four-month statutory hold period under applicable securities laws and TSX Venture Exchange policies.

Company insiders acquired 26% of the offering, purchasing 1,111,111 flow-through units and 2,500,000 non-flow-through units. The company classified this as a related party transaction under TSX Venture Exchange Policy 5.9 and Multilateral Instrument 61-101.

Finders fees of C$43,000 in cash and 66,667 broker warrants, exercisable at C$0.045 per share for 24 months, will be paid in connection with the transaction.

The company states that approximately 75% of net proceeds will fund early-stage field exploration on regional prospects, including mapping, sampling, and assaying. About 17% will support metallurgical test work on the Lingman Lake mine area gold zones, with the remainder allocated to general working capital.

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