Guyana Goldstrike Closes First Tranche of Private Placement
Vancouver, December 11, 2017 - Guyana Goldstrike Inc. (the "Company" or "Guyana Goldstrike") (TSXV: GYA, OTC: GYNAF, FSE: 1ZT) is pleased to announce it has completed the first tranche of a private placement for gross proceeds of $200,000. In connection with completion of the private placement, the Company issued 666,667 units (each, a "Unit") at a price of $0.30 per Unit. Each "Unit" consists of one common share of the Company and one-half-of-one common share purchase warrant (each whole warrant, a "Warrant"). Each "Warrant" is exercisable to acquire an additional common share of the Company at a price of $0.40 for a period of twenty-four months, subject to accelerated expiry in the event the closing price of the Company's common shares is $0.75 or greater for ten consecutive trading days. The board of directors of the Company has approved further tranches of the private placement to raise gross proceeds of up to $1,000,000 through the issuance of up to 3,333,334 Units. In connection with completion of this first tranche, the Company paid finders' fees of $4,500 and issued 15,000 broker warrants to an arms' length finder who introduced a subscriber to the placement. Each broker warrant is exercisable on the same terms as the Warrants.
All securities issued in connection with the placement are subject to a four-month-and-one-day statutory hold period. Completion of further tranches of the placement remains subject to the approval of the TSX Venture Exchange.
In connection with closing of the private placement, Cambrian Capital Corp. ("Cambrian"), a holding company controlled by Charles Hugh Maddin, acquired 500,000 Units, consisting of 500,000 common shares of the Company, and 250,000 Warrants. Following completion of the private placement, Mr. Maddin and Cambrian have ownership and control of 5,891,750 common shares of the Company, representing approximately 15.5% of the Company's current issued and outstanding common shares, 642,500 common share purchase warrants and 200,000 incentive stock options. Mr. Maddin and Cambrian would have ownership and control of 6,734,250 common shares of the Company, representing approximately 17.3% of the then issued and outstanding common shares of the Company, assuming exercise of only the warrants and options held by each.
The Units were acquired by Cambrian for investment purposes. In the future, additional securities of the Company may be acquired or disposed of by Mr. Maddin or Cambrian, through the market, privately or otherwise, as circumstances or market conditions may warrant.
For further information and to obtain a copy of the early warning report filed under applicable Canadian provincial securities legislation in connection with the acquisition, please go the Company's profile on SEDAR or contact Peter Berdusco at 1.877.844.4661.
On behalf of the Board of Directors of
Peter Berdusco
President and Chief Executive Officer
Neither the 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 release.
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