Blue Lagoon Announces Private Placement

Rhea-AI Summary

Blue Lagoon Resources Inc. (CSE:BLLG)(FSE:7BL)(OTCQB:BLAGF) has announced a fully subscribed private placement offering of 2,202,000 flow-through units at $1.00 each and 148,352 common shares at $0.91, totaling $2,337,000 in gross proceeds. The offering closes on November 23, 2020. Proceeds will support exploration at the Dome Mountain gold project and general working capital. A 6% finder's fee will be paid, along with warrants. The company's upward financing indicates investor confidence and potential growth for shareholders.

Positive

• Total gross proceeds of $2,337,000 indicate strong investor interest.
• Funds allocated for exploration activities at the promising Dome Mountain gold project.

Negative

• None.

VANCOUVER, BC / ACCESSWIRE / November 20, 2020 / Blue Lagoon Resources Inc. (the "Company") (CSE:BLLG)(FSE:7BL)(OTCQB:BLAGF) announces a private placement offering (the "Private Placement") of 2,202,000 flow-through units ("Units") at a price of $1.00 per Unit and 148,352 common shares at a price of $0.91 per share for aggregate gross proceeds to the Company of $2,337,000. Each Unit is comprised of one flow-through common share of the Company and one-half of one common share purchase warrant. Each whole warrant is exercisable into one common share of the Company at an exercise price of $1.30 per share for a period of 36 months from the closing date. The offering is fully subscribed and closing is scheduled for November 23, 2020.

Proceeds of the Private Placement will be used for exploration activities on the Company's Dome Mountain gold project and for general working capital purposes.

The Company has agreed to pay a finder's fee in cash equal to 6% of the gross proceeds from the sale of Units to third parties sourced by the finders as well as warrants to purchase that number of common shares of the Company up to 7% of the number of Units sold to third parties sourced by the finders. The finder's warrants may be exercised to acquire common shares of the Company at a price of $1.30 per common share for a period of 36 months from the date of closing.

For further information, please contact:

Rana Vig
President and Chief Executive Officer
Telephone: 604-218-4766
Email: rana@ranavig.com

The CSE has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

SOURCE: Blue Lagoon Resources Inc.

View source version on accesswire.com:
https://www.accesswire.com/617824/Blue-Lagoon-Announces-Private-Placement

FAQ

What is the total amount raised in Blue Lagoon Resources' private placement?

Blue Lagoon Resources raised a total of $2,337,000 in its private placement.

When is the closing date for Blue Lagoon Resources' private placement?

The closing date for the private placement is scheduled for November 23, 2020.

What will the proceeds of the private placement be used for?

Proceeds from the private placement will be used for exploration on the Dome Mountain gold project and general working capital.

How many flow-through units are being offered in the private placement?

A total of 2,202,000 flow-through units are being offered in the private placement.

What is the exercise price for the warrants associated with the private placement?

The exercise price for the warrants is $1.30 per common share.