Golden Dawn Closes Private Placement

Rhea-AI Summary

Golden Dawn Minerals Inc. announced the successful closing of a private placement raising $350,000 by offering 2,333,333 units at $0.15 each. Each unit comprises one common share and a warrant exercisable at $0.30 for 18 months. Funds will be used for exploration and general working capital, specifically for the Lexington project. Additionally, the company made a CDN $500,000 payment to Rivi Opportunity Fund towards a promissory note as part of a debt reorganization agreement. The private placement is pending final approval from the TSX-V.

Positive

• Raised $350,000 through a private placement to support exploration.
• Payment of CDN $500,000 towards debt reorganization indicates commitment to financial obligations.

Negative

• None.

VANCOUVER, BC / ACCESSWIRE / February 18, 2022 / Golden Dawn Minerals Inc., (TSXV:GOM)(FRANKFURT:3G8C)(OTC PINK:GDMRD), ("Golden Dawn" or the "Company"). The Company is pleased to announce that it has closed it's previously announced private placement of February 14, 2022. The non-brokered private placement consisted of 2,333,333 units at a price of $0.15 per unit for gross proceeds of $350,000. Each Unit consists of one common share and one transferable common share purchase warrant. Each whole warrant will entitle the holder to purchase, for a period of 18 months from the date of issue, one additional common share of the Issuer at an exercise price of $0.30 per share. All securities issued pursuant to the offering are subject to a statutory hold period ending June 19, 2022. No finders' fees were paid for this placement. The closing of the private placement financing is subject to final TSX-V approval.

The net proceeds from the Offering will be used by the Company for continued exploration and maintenance of its Lexington project and other BC mineral exploration projects, as well as for general working capital purposes.

The Company also announces that further to it's December 28, 2021, news release it has made the CDN $500,000. payment to Rivi Opportunity Fund LP. towards the promissory note as per the debt reorganization agreement.

On behalf of the Board of GOLDEN DAWN MINERALS INC.

Per: "Christopher R. Anderson"

Christopher R. Anderson
Chief Executive Officer

For further information, please contact:
Golden Dawn Minerals Inc. - Corporate Communications:
Tel: 604-488-3900
Email: Office@goldendawnminerals.com

Forward-Looking Statement Cautions:

This news release contains certain "forward-looking statements" within the meaning of Canadian securities legislation, relating to, among other things, preliminary plans for a consolidation of the Company's Shares. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking statements are statements that are not historical facts; they are generally, but not always, identified by the words "expects," "plans," "anticipates," "believes," "intends," "estimates," "projects," "aims," "potential," "goal," "objective," "prospective," and similar expressions, or that events or conditions "will," "would," "may," "can," "could" or "should" occur, or are those statements, which, by their nature, refer to future events. The Company cautions that forward-looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made and they involve a number of risks and uncertainties. Consequently, there can be no assurances that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Except to the extent required by applicable securities laws and the policies of the TSX Venture Exchange, the Company undertakes no obligation to update these forward-looking statements if management's beliefs, estimates or opinions, or other factors, should change. Factors that could cause future results to differ materially from those anticipated in these forward-looking statements include the possibility that the TSX Venture Exchange will not approve the proposed share consolidation, and that the Company may not be able to raise sufficient additional capital to continue its business. The reader is urged to refer to the Company's reports, publicly available through the Canadian Securities Administrators' System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com for a more complete discussion of such risk factors and their potential effects.

This news release does not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of any of securities of the Company in any jurisdiction in which such offer, solicitation or sale would be unlawful, including any of the securities in the United States of America. The Company's securities have not been and will not be registered under the United States Securities Act of 1933 (the "1933 Act") or any state securities laws and may not be offered or sold within the United States or to, or for account or benefit of, U.S. Persons (as defined in Regulation S under the 1933 Act) unless registered under the 1933 Act and applicable state securities laws, or an exemption from such registration requirements is available.

THIS PRESS RELEASE DOES NOT CONSTITUTE AN OFFER TO SELL, OR THE SOLICITATION OF AN OFFER TO BUY, NOR SHALL THERE BE ANY SALE OF SECURITIES OF THE COMPANY IN ANY JURISDICTION IN WHICH SUCH OFFER, SOLICITATION OR SALE WOULD BE UNLAWFUL PRIOR TO REGISTRATION OR QUALIFICATION UNDER THE SECURITIES LAWS OF ANY SUCH JURISDICTION.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accept responsibility for the adequacy or accuracy of this release.

SOURCE: Golden Dawn Minerals Inc.

View source version on accesswire.com:
https://www.accesswire.com/689545/Golden-Dawn-Closes-Private-Placement

FAQ

What is the significance of Golden Dawn's recent private placement?

Golden Dawn Minerals raised $350,000 in a private placement, which is intended to fund exploration efforts and provide working capital.

When does the warrant exercise period end for Golden Dawn's private placement?

The warrants issued in the private placement will be exercisable for 18 months from the date of issue.

What is the exercise price of the warrants from Golden Dawn's private placement?

The exercise price of each warrant from the private placement is $0.30 per share.

What projects will the proceeds of Golden Dawn's private placement be used for?

The proceeds will be utilized for the Lexington project and other mineral exploration projects in British Columbia.

What payment did Golden Dawn make towards its debt obligations?

Golden Dawn made a CDN $500,000 payment to Rivi Opportunity Fund LP as part of its debt reorganization agreement.