Golden Tag Announces $5.6 Million Non-Brokered Financing Led by Eric Sprott

TORONTO, July 28, 2020 (GLOBE NEWSWIRE) -- Golden Tag Resources Ltd. (“Golden Tag” or the “Company”) (TSX.V: GOG) announces that the Company will arrange a non-brokered private placement pursuant (“Private Placement”) to which it will sell up to 20,000,000 Units (each, a “Unit”) at a price of C$0.28 per Unit to raise aggregate proceeds of up to $5,600,000 (the “Offering”). The Offering is subject to an over-allotment option allowing Golden Tag to increase the number of Units sold by an additional 5,000,000 Units for total aggregate proceeds of $7,000,000, if fully exercised.

Mr. Eric Sprott, through 2176423 Ontario Ltd., a corporation beneficially controlled by him, is subscribing for 19.9% or 3,980,000 Units in the Offering.

Each Unit will consist of one common share in the capital of the Company (“Common Share”) and one-half of one Common Share purchase warrant (each, a “Warrant”). Each whole Warrant shall entitle the holder thereof to acquire one Common Share at a price of C$0.40 for 24 months following the closing of the Offering, whereupon the Warrants expire. The Warrants contain an acceleration provision whereby if the closing price of the common shares on the TSX Venture Exchange is $0.70 or more for 10 consecutive trading days the Company will have the right to accelerate the expiry date of the Warrants.

Finder's fees may be payable on a portion of the Offering. PI Financial Corp, Red Cloud Securities Inc. and PowerOne Capital Markets Limited are acting as finders in connection with the Offering.

The securities issued and issuable pursuant to the Offering will be subject to a four month and one day hold period. The Company intends to use the net proceeds of the Offering to fund advancement of the Company’s 100% owned San Diego Project, in Durango Mexico, and for working capital and general corporate purposes. The Offering is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the TSX Venture Exchange and applicable securities regulatory authorities.

The securities offered have not been registered under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”), or applicable state securities laws, and may not be offered or sold to persons in the United States absent registration or an exemption from such registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.