Golden Spike Resources closes $975,000 private placement

Golden Spike Resources Corp. (CSE: GLDS) (OTCQB: GSPRF) (FSE: L5Y) has closed a non-brokered private placement, raising aggregate gross proceeds of $975,000 through the sale of 975 units at $1,000 per unit.

Each unit consisted of one 15% unsecured convertible debenture with a principal amount of $1,000 and 26,315 common share purchase warrants. The debentures mature on September 23, 2029, and bear interest at 15% per annum. The company may satisfy interest obligations in cash or in common shares, subject to Canadian Securities Exchange approval.

The principal amount of each debenture is convertible into common shares at $0.038 per share on a pre-consolidation basis, or $0.19 on a post-consolidation basis. Warrants are exercisable at the same price until the maturity date, with an acceleration clause triggered if the volume-weighted average trading price exceeds $0.09 per share on a pre-consolidation basis across 20 consecutive trading days beginning January 24, 2027, with a minimum daily trading volume of 50,000 shares.

The company paid finder's fees totaling $29,510 in cash and issued 828,947 finder's warrants to eligible arm's length parties. All securities issued are subject to a statutory hold period until January 24, 2027.

Insiders subscribed for 45 units, representing $45,000 of the total raise, classifying the transaction as a related party transaction under Multilateral Instrument 61-101. The company said it relied on exemptions from formal valuation and minority approval requirements, as the value involved did not exceed 25% of its market capitalization.

Net proceeds are intended for working capital and general corporate purposes, according to the company's statement.

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