TORONTO, ONTARIO--(Marketwired - July 21, 2016) - Signature Resources Ltd. (TSX VENTURE:SGU)(OTC PINK:SGGTF) ("Signature" or the "Company") is pleased to announce today that it closed the second and final tranche (the "Second Tranche") of its unit (the "Units") financing (the "Financing") initially announced in its news release of April 21, 2016. The closing of the Second Tranche resulted in gross proceeds to the Company of $599,544 from the sale of 11,990,870 Units, which together with the first tranche of the Financing (see the Company's news release of July 5, 2016), has resulted in aggregate gross proceeds to the Company of $1,066,338. The proceeds realized from the Second Tranche will be used for general corporate and working capital purposes, and for the continued exploration of the Company's Lingman Lake property.
Mr. Walter Hanych, Chief Executive Officer of the Company, commented, "We are extremely pleased to close the Second Tranche of our Financing. The oversubscription to the Financing is a clear expression of shareholder confidence in the Company and an endorsement of the potential that the Lingman Lake gold property offers. We look forward to advancing this gold property and building an asset of value beneficial to all shareholders."
Each Unit was sold at a price of $0.05 and consists of one common share of the Company (each, a "Common Share") and one common share purchase warrant (each, a "Warrant"). Each Warrant issued pursuant to the Second Tranche of the Financing will be exercisable at a price of $0.15 for a period of 24 months following closing of the Second Tranche, provided that if after four months and one day following the closing of the Second Tranche, the closing price of the Company's Common Shares on the TSX Venture Exchange is equal to or greater than $0.25 for 10 consecutive trading days, then the Company may accelerate the expiry date of the Warrants by disseminating a press release and in such case the Warrants will expire on the 90th day after the date on which such press release is disseminated by the Company (the "Acceleration Clause"). In connection with the Second Tranche, the Company paid a cash finder's fee to Janice Rushford of $34,800 and issued 688,000 finder's warrants (each, a "Finder's Warrants"). Each Finder's Warrant issued pursuant to the Second Tranche of the Financing will is exercisable to acquire one Common Share at a price of $0.05 for a period of 24 months following closing of the Second Tranche, subject to the Acceleration Clause. Directors and officers of the corporation participated in the private placement in the amount of $5,000.
The Company also announces that pursuant to the Company's stock option plan, effective July 19, 2016, the Company granted an aggregate of 1,125,000 stock options (the "Options"), of which 1,050,000 Options were issued to certain directors and executive officers of the Company. The Options are exercisable at a price of $0.055 per Common Share. 25 percent of the Options vested on the grant date, with the remaining 75 percent of the Options vesting in 25 percent increments semi-annually, and expire five years following the vesting date.
Together with the Company's original four free hold patented claims and the twelve staked claims, an aggregate of 606.8 hectares comprises the Lingman Lake Property. The Lingman Lake Property hosts an historic estimate of 234,684 oz of gold* and includes what has historically been referred to as the Lingman Lake Gold Mine, an underground substructure consisting of a 126.5-meter shaft, and 3-levels at 46-meters, 84-meters and 122-meters depths.
Cautionary Note. The quantity reported as 'historical' estimate is historic in nature: A qualified person has not done sufficient work to classify the historical estimate as a current resource estimate. The issuer is not treating the historical estimate as a current resource estimate.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
Information set forth in this news release may involve forward-looking statements under applicable securities laws. The forward-looking statements contained herein are expressly qualified in their entirety by this cautionary statement. The forward-looking statements included in this document are made as of the date of this document and the Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities legislation. Although management believes that the expectations represented in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. This news release does not constitute an offer to sell or solicitation of an offer to buy any of the securities described herein and accordingly undue reliance should not be put on such.