Mr.Dan Stuart reports
JUGGERNAUT COMPLETES $1,677,000 FINANCING
Juggernaut Exploration Ltd.'snon-brokered private placement of $1.65-million announced on Nov. 27, 2018, has been increased and closed at $1,677,800 subject to acceptance by the TSX Venture Exchange. Due to strong demand from institutions and accredited investors alike in the Americas and Europe, management is arranging a second-tranche financing with closing planned for Dec. 13, 2018, pending final acceptance by the exchange. Upon final acceptance, Juggernaut will be financed to meet its 2019 exploration commitments on Empire, Midas, DSM and J2 projects.
Dan Stuart, director, president and chief executive officer of Juggernaut, stated: "Our properties are all located in key geologic terranes that have garnered interest from the miners and strong support from institutions alike. Drill results from Midas and Empire will be reported once received, compiled and interpreted. We look forward to the 2019 drilling and exploration season with great anticipation."
The offering consisted of flow-through units at the price of 18 cents and non-flow-through units at the price of 16 cents. Each flow-through unit consists of one common share, which is a flow-through share for Canadian income tax purposes, and one-half share purchase warrant (each half warrant a 36-centwarrant). Two 36-centhalf warrants entitle the holder to purchase one additional common share, which is not a flow-through share, at the price of 36 cents for 24 months after closing. Each non-flow-through unit consists of one common share, which is not a flow-through share, and one share purchase warrant (each a 32-cent warrant). Each 32-cent warrant entitles the holder to purchase one additional common share, which is not a flow-through share, at the price of 32 cents for a period of 36 months after closing. If, at any time after four months after the date of completion of the offering, the company's shares have a closing price equal to or higher than 72 cents per share for 10 consecutive trading days on the TSX-V (as defined herein), the company shall thereafter be entitled to give notice to the holders of all 36-cent warrants, by news release, that such warrants will expire at 4:30 p.m. Toronto time on that date which is 30 days after the date of such news release unless exercised before the expiry of that period. If at any time after four months after the date of completion of the offering the company's shares have a closing price equal to or higher than 80 cents per share for 10 consecutive trading days on the TSX-V (as defined herein), the company shall thereafter be entitled to give notice to the holders of all 32-cent warrants, by news release, that such warrants will expire at 4:30 p.m. Toronto time on that date which is 30 days after the date of such news release unless exercised before the expiry of that period. The completed financing consisted of 3,479,375 non-flow-through units for gross proceeds of $556,700 and 6,228,333 flow-through units for gross proceeds of $1,121,100.
The company will pay finder's fees equal to 5 per centof the gross proceeds from a portion of the financing in cash and 5 per centfinderwarrants equal to the number of units sold in accordance with the policies of the exchange.Subject to acceptance by the exchange, the company will pay a total of $68,240 in finders' fees as well as 76,157 and 300,417 finder warrants in relation to the non-flow-through and flow-through units sold respectively. These warrants are priced and have the same terms as the warrants attached to the respective units sold.
All shares issued pursuant to the offering and any shares issued pursuant to the exercise of warrants (including warrants issued to finders) will be subject to a four-month hold period from the closing date.
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