Tarachi Gold Corp. - Announces Closing of Non-Brokered Private Placement
VANCOUVER, British Columbia, May 25, 2020 – Tarachi Gold Corp. (CSE: TRG) (the “Company”) is pleased to announce that it has closed its non-brokered private placement (the “Private Placement”) issuing a total of 13,003,664 units (the “Units”) at CAD$0.15 per Unit for total gross proceeds of CAD$1,950,550.
Each Unit consists of one common share (the “Shares”) and one common share purchase warrant (the “Warrants”) with each Warrant entitling the holder to purchase one Share of the Company at a price of CAD$0.25 per Share for a period of 24 months from the date of closing of the Private Placement.
All securities issued will be subject to a four month hold period pursuant to securities laws in Canada.
The Company intends to use the proceeds from the Private Placement for exploration of the Company’s portfolio of resource properties in Mexico and for general working capital. Exploration work will consist of additional geochemical, geological survey work, environmental studies and drilling permit applications in order to commence diamond drilling this summer.
The Company paid finders’ fees of $84,135 and issued 566,233 finders’ warrants at the same terms as the Warrants described above.
About the Tarachi Project
Tarachi has an option to acquire 100% of a group of concessions in the Sierra Madre gold belt known as the Tarachi project. The project is approximately 220 kilometres ("km") east of the City of Hermosillo, and 300km south of the border between the United States of America and Mexico. The Tarachi projects include the El Jabali past producing gold mine, consisting of 70 hectares located in east Sonora in the Mulatos gold belt. The property is located only 6 km west from Alamos Gold Inc.'s "Mulatos" gold-and silver-producing heap-leach mine.
Lorne Warner, P. Geo, President, CEO and a director of the company is a qualified person as defined by National Instrument 43-101, has reviewed and approved the scientific and technical disclosure in this news release.
Contact Information: For more information and to sign-up to the mailing list, please contact:
Martin Bajic, CFO
Tel: (604) 551-6770
This news release includes certain “Forward?Looking Statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and “forward?looking information” under applicable Canadian securities laws. When used in this news release, the words “anticipate”, “believe”, “estimate”, “expect”, “target”, “plan”, “forecast”, “may”, “would”, “could”, “schedule” and similar words or expressions, identify forward?looking statements or information. These forward?looking statements or information relate to, among other things: the exploration and
development of the Project; future mineral exploration, development and production including the identification of a work program.
Forward?looking statements and forward?looking information relating to any future mineral production, liquidity, enhanced value and capital markets profile of Tarachi, future growth potential for Tarachi and its business, and future exploration plans are based on management’s reasonable assumptions, estimates, expectations, analyses and opinions, which are based on management’s experience and perception of trends, current conditions and expected developments, and other factors that management believes are relevant and reasonable in the circumstances, but which may prove to be incorrect. Assumptions have been made regarding, among other things, the price of silver, gold and other metals; costs of exploration and development; the estimated costs of development of exploration projects; Tarachi’s ability to operate in a safe and effective manner and its ability to obtain financing on reasonable terms.
These statements reflect Tarachi’s respective current views with respect to future events and are necessarily based upon a number of other assumptions and estimates that, while considered reasonable by management, are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Many factors, both known and unknown, could cause actual results, performance or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward?looking statements or forward-looking information and Tarachi has made assumptions and estimates based on or related to many of these factors. Such factors include, without limitation: satisfaction or waiver of all applicable conditions to closing fluctuations in general macro?economic conditions; fluctuations in securities markets and the market price of Tarachi’s common shares; and the factors identified under the caption “Risk Factors” in Tarachi’s management discussion and analysis. Readers are cautioned against attributing undue certainty to forward?looking statements or forward-looking information. Although Tarachi has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be anticipated, estimated or intended. Tarachi does not intend, and does not assume any obligation, to update these forward?looking statements or forward-looking information to reflect changes in assumptions or changes in circumstances or any other events affecting such statements or information, other than as required by applicable law.
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