CPE Media News (11/15/2018) – Viva Gold Corp. (TSX-V: VAU; OTCPK: VAUCF; FSE: 7PB) has closed the second and final tranche of its previously announced non-brokered Private Placement, issuing 1,955,986 units at $0.37 per unit for gross proceeds of $723,714.82.
Viva Gold issued 2,990,536 units in two tranches for gross proceeds of CDN $1,106,498. Subscribers from Canada, Belize, BVI, China, USA and UK participated in the private placement.
Proceeds will be used to perform drilling and metallurgical testing work at Viva Gold’s Tonopah Property, and for general working capital purposes.
photo credit: Via Gold
News Release
VIVA GOLD CORP. CLOSES PRIVATE PLACEMENT
NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
VANCOUVER, BC – November 14, 2018 – Viva Gold Corp. (TSX-Venture: VAU; OTCBB: VAUCF) (the “Company” or “Viva”) is pleased to announce that it has closed the second and final tranche of the non-brokered Private Placement (the “Offering”) announced September 13, 2018. In connection with the closing of the second tranche, the Company issued 1,955,986 Units (the “Units”) at a price of CDN $0.37 per Unit. In total, the Company issued 2,990,536 Units in the Offering for gross proceeds of CDN $1,106,498. Each Unit consists of one common share in the capital of the Company (a “Share”) and one whole transferable common share purchase warrant (each whole common share purchase warrant, a “Warrant”). Each whole Warrant is exercisable to acquire one Share at an exercise price of CDN$0.47 per Share. Warrants issued in the first tranche are exercisable until October 26, 2020 and those Warrants issued in the second tranche are exercisable until November 13, 2020, both of which are 24 months from the date of issuance. Nine placees subscribed to the Offering in the second tranche, with a total of 20 placees subscribing in both tranches of the Offering.
Insiders of the Company acquired an aggregate of 54,000 Units in the second tranche Offering, which participation constituted a “related party transaction” as defined under Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions (“MI 61-101”). Such participation is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as neither the fair market value of the Units acquired by the insiders, nor the consideration for the Units paid by such insiders, exceed 25% of the Company’s market capitalization. As required by MI 61-101, the Company advises that it expects to file a material change report relating to the Offering less than 21 days before completion of the Offering, which is necessary to complete the Offering in an expeditious manner and is reasonable in the circumstances.
The proceeds of the Offering will be used to perform drilling and metallurgical testing work at the Issuer’s Tonopah Property, and for general working capital purposes.
The Company will pay aggregate finder’s fees on the second tranche of CDN $4,440 and will issue 12,000 Warrants in connection with subscriptions introduced to the Offering by PI Financial Securities Inc. The securities issued under the Offering, and any Shares that may be issuable on exercise of any such securities, will be subject to a statutory hold period expiring four months and one day from the date of issuance of such securities.
Viva Gold is a gold exploration and development company with a focus on Nevada. Viva holds 100% of the Tonopah Gold Project, a large land position with demonstrated high-grade measured, indicated and inferred gold resources, located on the prolific Walker Lane Trend in Nevada, 30 kilometers south-east of the Round Mountain mine of Kinross Gold and 20 kilometers from the Town of Tonopah. Viva’s management team has extensive experience in mining exploration, development and production and are supported by a Board of Directors and advisors who are proven mine finders, deal makers and financiers. Viva trades on the TSX-V as “VAU”, on the OTCBB in the US as “VAUCF” and on the Frankfurt exchange under “7PB”. For additional information on Viva Gold and the Tonopah Gold Project, please visit our website: www.vivagoldcorp.com.
For further information please contact:
James Hesketh, President & CEO
(720) 291-1775
jhesketh@vivagoldcorp.com
Valerie Kimball, Director Investor Relations
(720) 933-1150
vkimball@vivagoldcorp.com
Neither the TSX Venture Exchange nor its Regulation Service Provider (as the term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy of this news release.
