Golden Spike Closes Private Placement Financing of Units with Participation from Eric Sprott

Rhea-AI Summary

Golden Spike Resources Corp. (CSE: GLDS) (OTCQB: GSPRF) (FSE: L5Y) has closed a private placement financing, issuing 3,950,000 Units at $0.08 per Unit for gross proceeds of $316,000. Eric Sprott acquired 2,500,000 Units for total consideration of $200,000, increasing his ownership to 8.7% on a non-diluted basis. The proceeds will be used for exploration and development of the Company's projects in Newfoundland, and for general working capital.

Vancouver, British Columbia--(Newsfile Corp. - December 5, 2023) - Golden Spike Resources Corp. (CSE: GLDS) (OTCQB: GSPRF) (FSE: L5Y) ("Golden Spike" or the "Company") further to its news release on November 30, 2023, the Company has closed the private placement financing and issued 3,950,000 Units at $0.08 per Unit for gross proceeds of $316,000. Each Unit consists of one common share and one-half of one warrant. Each whole transferable warrant (a "Warrant") is exercisable at $0.10 per common share until December 5, 2025 (the "Private Placement").

The Company paid finder's fees consisting of $4,800 cash and 60,000 non-transferable warrants. Each finder's warrant is exercisable at $0.10 per common share until December 5, 2025, on a portion of the Private Placement in accordance with the policies of the Canadian Securities Exchange.

Eric Sprott, through 2176423 Ontario Ltd., a corporation beneficially owned by him, acquired 2,500,000 Units pursuant to the Private Placement for total consideration of $200,000. Prior to the Private Placement, Mr. Sprott beneficially owned or controlled 1,000,000 common shares of the Company representing approximately 2.8 % of the outstanding common shares of the Company on a non diluted basis.

As a result of the Private Placement, Mr. Sprott now beneficially owns or controls 3,500,000 common shares and 1,250,000 common share purchase warrants of the Company representing approximately 8.7% on a non-diluted basis and 12.0% on a fully diluted basis assuming the exercise of such Warrants.

The securities are held for investment purposes. Mr. Sprott has a long-term view of the investment and may acquire additional securities including on the open market or through private acquisitions or sell the securities including on the open market or through private dispositions in the future depending on market conditions, reformulation of plans and/or other relevant factors.

A copy of the early warning report with respect to the foregoing will appear on Golden Spikes's profile on SEDAR+ at www.sedarplus.ca and may also be obtained by calling Mr. Sprott's office at (416) 945-3294 (2176423 Ontario Ltd., 7 King Street East, Suite 1106, Toronto Ontario M5C 3C5).

Proceeds of the Private Placement will be used for exploration and development of the Company's projects in Newfoundland, and for general working capital.

About Golden Spike

Golden Spike Resources Corp. (CSE:GLDS) (OTCQB: GSPRF) (FSE: L5Y) is a Canadian mineral exploration company focused on identifying, acquiring and unlocking value in mineral opportunities in Canada and other low-risk jurisdictions. The Company currently holds 100% interest in the 3,425-hectare Gregory River Property in Newfoundland, strategically centered over an approximate 11-kilometer-long stretch of the Gregory River VMS-belt, a north-northeast trending corridor of very prospective ground with potential to host Cyprus-type polymetallic VMS deposits. In addition, the Property hosts a cluster of historically explored, high-grade, copper ±gold vein structures.

ON BEHALF OF THE BOARD OF DIRECTORS

Keith Anderson, President and CEO
Golden Spike Resources Corp.
830 - 1100 Melville St., Vancouver, BC, V6E 4A6
+1 (604) 786-7774
info@goldenspikeresources.com; www.goldenspikeresources.com

"Neither the Canadian Securities Exchange (the "CSE") nor its Regulation Services Provider (as that term is defined in policies of the CSE) accepts responsibility for the adequacy or accuracy of this release."

Cautionary Note Regarding Forward-Looking Statements

This release includes certain statements and information that may constitute forward-looking information within the meaning of applicable Canadian securities laws. Forward-looking statements relate to future events or future performance and reflect the expectations or beliefs of management of the Company regarding future events. Generally, forward-looking statements and information can be identified by the use of forward-looking terminology such as "intends" or "anticipates", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "should", "would" occur.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/189983

FAQ

What is the latest update from Golden Spike Resources Corp. (CSE: GLDS)?

Golden Spike Resources Corp. (CSE: GLDS) has closed a private placement financing, issuing 3,950,000 Units at $0.08 per Unit for gross proceeds of $316,000.

How much did Eric Sprott acquire and at what price?

Eric Sprott acquired 2,500,000 Units for total consideration of $200,000.

What is the intended use of the proceeds from the Private Placement for Golden Spike Resources Corp. (CSE: GLDS)?

The proceeds will be used for exploration and development of the Company's projects in Newfoundland, and for general working capital.