Toronto, Ontario–(Newsfile Corp. – July 13, 2021) – GoldSpot Discoveries Corp. (TSXV: SPOT) (OTCQX: SPOFF) (“GoldSpot” or the “Company”), a leading technology services company leveraging machine learning to transform the mineral discovery process, and Golden Planet Mining Corp. (“Golden Planet” or “GPM”) are pleased to announce that Golden Planet has completed a non-brokered private placement for aggregate gross proceeds of $6,597,070 (the “Private Placement”) whereby Golden Planet issued an aggregate of 7,330,078 common shares (“Common Shares”) from its treasury at a price of $0.90 per Common Share.
Mr. Eric Sprott and GoldSpot, who previously held 4% and 30% of the outstanding GPM Common Shares, respectively, led the Private Placement. Mr. Sprott, through 2176423 Ontario Ltd., a corporation which is beneficially owned by him, purchased 2,222,222 units of Golden Planet for aggregate consideration of $2,000,000 and GoldSpot Discoveries purchased 1,110,371 units for aggregate consideration of $999,334. As a result of the Private Placement, the Company now owns 28% of Golden Planet with a fair market value increasing to $15,534,000.
Golden Planet, which was formed through the business combination of Saskatchewan Gold Corp. (founded by Palisades Goldcorp) and XCorp AI Ltd. (founded by GoldSpot), owns 100% of three district scale projects: The Rider Project (600km2) located 50km South from Mackenzie, BC, the Olympus Gold Project (125km2) located in Slave Corridor, NWT and the Mammoth Gold Project (1469km2) located 10km South of La Ronge, SK.
In January 2021, Golden Planet completed a $6,427,500 financing at $0.50 (including $0.68 per flow-through share) led by Mr. Sprott. Since that time, Golden Planet:
- Acquired ownership of the Olympus Gold Project, NWT;
- Commenced drilling at the Mammoth Gold Project, SK; and
- Commenced regional exploration at the Rider Gold Project, BC inclusive of a till survey, Geochem, bedrock mapping and prospecting.
Proceeds from the Private Placement will be used to fund a high-resolution district VTEM geophysics survey scheduled at Rider in July, with Olympus exploration to commence including regional till geochemistry, bedrock mapping, prospecting and ground geophysics over known prospects. Reverse circulation drilling and trenching will commence in September at Rider to test bedrock mineralization.
As a result of the Private Placement, Golden Planet has $12 million of working capital with 60,985,078 Common Shares issued and outstanding.
About GoldSpot Discoveries
GoldSpot Discoveries (TSXV: SPOT) (OTCQX: SPOFF) is a technology services company in mineral exploration. GoldSpot is a leading team of expert scientists who merge geoscience and data science to deliver bespoke solutions that transform the mineral discovery process. In the race to make discoveries, GoldSpot produces Smart Targets and advanced geological modelling that saves time, reduces costs and provides accurate results.
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Executive Chairman and President
GoldSpot Discoveries Corp.
Cautionary Statement on Forward-Looking Information
Neither the TSX Venture Exchange (“TSXV”) nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This news release contains forward-looking information which involves risks, uncertainties and other factors that could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward-looking information in this news release includes but is not limited to, the Company’s objectives, goals or future plans, statements regarding exploration results and exploration plans. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to, capital and operating costs varying significantly from estimates, the preliminary nature of metallurgical test results, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, fluctuations in commodity prices, delays in the development of projects and the other risks involved in the mineral exploration and development industry, and those risks set out in the Company’s public documents filed on SEDAR. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.