StrikePoint Gold closes C$2M non-brokered private placement

StrikePoint Gold Inc. (TSXV: SKP) (OTC: STKXF) has closed a non-brokered private placement, raising C$2 million through the issuance of 10 million units at C$0.20 per unit, according to a company statement.

Each unit consists of one common share and one-half of one common share purchase warrant. Each whole warrant is exercisable into one share at C$0.30 for three years from the closing date. No finders' fees were incurred in connection with the offering.

Directors and officers of the company subscribed for a total of 2,081,750 units for aggregate gross proceeds of C$416,350, which the company classified as related-party transactions under Multilateral Instrument 61-101. The company said it qualifies for exemptions from formal valuation and minority shareholder approval requirements, as the fair market value of the related-party transactions does not exceed 25% of the company's market capitalization.

Proceeds will be applied toward costs related to the previously announced acquisition of the Northumberland Gold Project in Nevada, a concurrent bought deal financing, and a share consolidation of 10 old shares for one new share. A portion of the proceeds will also repay C$500,000 in non-interest bearing promissory notes held by certain individuals, including non-arm's length parties. Remaining funds will support general working capital.

All securities issued are subject to a hold period of four months and one day from the date of issuance. The closing remains subject to final approval from the TSX Venture Exchange.

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