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Signature Resources (TSXV:SGU) closes private placement

Market News, Mining
TSXV:SGU
08 March 2023 09:30 (EDT)

Source: Signature Resources Ltd.

Signature Resources (SGU) has closed a non-brokered private placement raising gross proceeds of C$813,000.

Under the offering, the company issued 20,325,000 common shares priced at $0.04 per share.

Company insiders acquired 14,564,950 shares under the offering. 

All securities issued are subject to a statutory hold period ending July 9, 2023.

A portion of the gross proceeds will be used to pay debts to non-arm’s length parties and former company management. The balance of the proceeds will be used to fund ongoing work in preparation for the initial mineral resource estimate for the Lingman Lake gold property.

Dan Denbow, Interim CEO and Director of Signature Resources, commented on the capital raise.

“This offering is a significant step in resetting Signature’s path towards delivering on our goals of developing a better understanding of the potential for the Lingman Lake property and our large regional land package. We have significantly reduced our spending with a focus on the efficient use of investors’ capital as we move forward toward completing our initial resource. We believe we have a good plan to add value for investors with a focus on executing at each step to meet our objectives.”

The company also announces that it has agreed to issue 5,435,050 shares to satisfy $217,402 of outstanding debt. The transaction is subject to the final acceptance of the TSX Venture Exchange.

About Signature Resources

Signature Resources Ltd is a Canadian-based exploration company focused on expanding its 100 per cent owned Lingman Lake Gold zone, located within the prolific Red Lake district in Northwestern Ontario. The Lingman Lake gold property consists of 1,434 staked claims, four freehold fully patented claims and 14 mineral rights patented claims totalling approximately 27,113 hectares.

Signature Resources Ltd. (SGU) opened trading at C$0.04.


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