Spanish Mountain Gold closes C$7.2 million private placement

Spanish Mountain Gold Ltd. (TSX-V: SPA) completed a brokered private placement raising approximately C$7.2 million in gross proceeds, the company announced based on a press release statement.

The offering included the sale of 20,690,087 units at C$0.145 each, 7,121,850 flow-through share units at C$0.165 each, and 15,124,000 flow-through share units sold to charitable purchasers at C$0.20 each. Red Cloud Securities Inc. served as sole agent and bookrunner for the transaction.

Each unit consists of one common share and one warrant exercisable at C$0.22 per share until August 27, 2028. Flow-through units include one flow-through share and half of one warrant, also exercisable at C$0.22 until the same date.

The company stated it will use net proceeds for exploration and development work at its Spanish Mountain Gold Project in British Columbia's Cariboo Gold Corridor, along with working capital and general corporate purposes. Gross proceeds from flow-through shares will fund Canadian exploration expenses as defined under Canada's Income Tax Act.

Red Cloud received cash fees of C$338,200.51, representing 6% of gross proceeds, plus advisory fees of C$51,798.07 and 1,964,910 broker warrants. Company insiders purchased 5,112,200 units and 706,100 flow-through units as part of the offering.

The transaction remains subject to final approval from the TSX Venture Exchange. Securities sold to Canadian purchasers under the listed issuer financing exemption are immediately tradeable, while flow-through units are subject to a four-month restriction period ending December 28, 2025.

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