Desert Gold Ventures Inc. (TSX.V: DAU) recently concluded the first tranche of its non-brokered private placement, which saw 34,242,184 units sold at a rate of C$0.07 each, generating C$2,396,903 in gross proceeds. The securities issued as part of this closing will be held in accordance with applicable law. In addition, the Company will pay out a finder’s fee of C$28,770 and provide 161,000 non-transferable broker warrants. The placement funds will be used mainly for drilling at the Senegal Mali Shear Zone Project in Western Mali and for general working capital.
According to the Financing terms, each Unit comprises one common share and one complete stock purchase warrant. The Warrant gives the holder the right to purchase one more common share of the Company at a rate of C$0.08 per share for three years from closing. Directors and officers of the Company have taken up 8,128,571 Units in Financing. This involvement is a related party transaction as specified in Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions. The transaction will be exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as the fair market value of any securities issued or the consideration paid by such persons will not exceed 25% of the Company’s market capitalization.