TheNewswire – October 23, 2020 – DAMARA GOLD CORP. (TSXV:DMR) ("Damara" or the "Company") is pleased to announce that, further to is news release of October 19, 2020 announcing that it had entered into an assignment and assumption agreement with Canarc Resources Corp. pursuant to which Canarc has assigned (the "Assignment") to the Company an option to acquire a 75% interest in the Princeton Property located approximately 35km south of Princeton, British Columbia, it will conduct a non-brokered private placement (the "Financing") of up to 10,000,000 units (the "Units") of the Company at a price of $0.05 per Unit for gross proceeds of up to $500,000. the Company intends to complete a portion of the Concurrent Financing pursuant to the exemption as set out in BC Instrument 45-536 (Exemption from prospectus requirement for certain distributions through an investment dealer) (the "Investment Dealer Exemption").
Each Unit will consist of one common share of the Company (a "Common Share") and one-half of one Common Share purchase warrant (each whole warrant a "Warrant"). Each Warrant will entitle the holder to acquire one additional Common Share at a price of $0.10 per share for a period of 24 months from closing.
In accordance with the Investment Dealer Exemption, the Company advises that, as at the date hereof, there is no material fact or material change in respect of the Company that has not been generally disclosed. The Company further advises that there is no minimum number of Units being offered pursuant to the Financing.
The Company may pay finders’ fees of 5% non-transferable finders warrants ("Finder Warrant") to eligible finders. Each Finder Warrant will entitle the holder to acquire one Common Share at a price of $0.10 per share for a period of 24 months from closing.
All securities issued under the Financing will be subject to a hold period of four months and a day from the date of issuance in accordance with applicable securities laws.
The Company intends to use the net proceeds of the Financing for purposes of completing the Assignment and funding the required earn-in expenditures and operating costs in relation to the development of the Princeton Property and working capital.
Completion of the Assignment and the Financing are expected to occur in November 2020 and are subject to satisfaction of a number of customary conditions precedent, including, without limitation, the acceptance of the TSX Venture Exchange (the "Exchange") and the satisfaction of any conditions which the Exchange may impose, including those applicable to Fundamental Acquisitions (as such term is defined in Exchange Policy 5.3).
Damara Gold Corp. is a TSX Venture listed Canadian public company with a Board of Directors seasoned in the mineral exploration industry with extensive and successful international experience with a focus on identifying and acquiring prospective and under-explored gold properties worldwide.
ON BEHALF OF THE BOARD OF DIRECTORS OF DAMARA
Larry Nagy, Chief Executive Officer
For additional information visit Damara’s website at www.damaragoldcorp.com or contact:
Damara Gold Corp.
Chief Executive Officer or
Chief Financial Officer
Disclaimer for Forward-Looking Information
This press release contains forward-looking statements and information that are based on the beliefs of management and reflect Damara’s current expectations. The forward-looking statements and information in this press release information relating to the Financing, including the use of proceeds from the Financing and the Company’s expectation that it will close the Assignment. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.
THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS PRESS RELEASE REPRESENTS THE EXPECTATIONS OF DAMARA AS OF THE DATE OF THIS PRESS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE DAMARA MAY ELECT TO, IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME EXCEPT AS REQUIRED IN ACCORDANCE WITH APPLICABLE LAWS.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.
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