What’s Up with Signature Resources Ltd (CVE:SGU) (SGGTF)

Signature Resources Ltd (CVE:SGU) (OTCMKTS:SGGTF) stock is seeing a solid buying interest in early  trading on Monday.

Market Action

As of 10:09, SGU stock jumped 14 % to $0.1650 with more than 380k shares, compared to its average volume of 263k shares. The stock has moved within a range of $0.1500 – 0.1650 after opening the trade at $0.150.

Major Trigger:

Signature Resources Announces $3.5 Million Non-Brokered Private Placement LED by Commodity Discovery Fund, Funds Managed by Sprott Asset Management LP & Crescat Capital

Key Highlights:

• Signature Resources announced, subject to the approval of the TSX Venture Exchange, a non-brokered private placement of flow-through units (the ”FT Units”) and non-flow-through units (the “NFT Units”) for gross proceeds of up to C$3,500,000 (the “Offering”). Commodity Discovery Fund (“CDF”) out of the Netherlands has agreed to lead participation in the financing. This new interest from CDF was further bolstered by additional support from existing shareholders including funds Managed by Sprott Asset Management LP and Crescat Capital.
• Each FT Unit is being offered at a price of C$0.165 and will be comprised of one common share of the Company and one-half non flow-through common share purchase warrant (a “FT Warrant”) with an exercise price of C$0.25 per FT Warrant. Concurrently, NFT Units will be offered at a price of $0.16 per NFT Unit consisting of one common share and one-half common share purchase warrant (a “NFT Warrant”) with an exercise price of C$0.22 per NFT Warrant. Both the FT Wrrants and the NFT Warrants expire two-years following the closing date of the Offering.
• The net proceeds from the Offering will be used for general corporate purposes but primarily used to expand the current exploration efforts focused on the Lingman Lake Gold Project (the “Project”). The Company now controls approximately 90% of the Lingman Lake greenstone belt in Northwestern Ontario, Canada.