Golden Spike Resources plans name change, share consolidation and C$500K raise

Golden Spike Resources Corp. (CSE: GLDS, OTCQB: GSPRF, FSE: L5Y) announced a proposed non-brokered private placement of up to 500 units at C$1,000 per unit, targeting gross proceeds of up to C$500,000, according to a company statement.

Each unit consists of one 15% unsecured convertible debenture with a principal amount of C$1,000 and 26,315 common share purchase warrants. The debentures mature 36 months from closing, with interest payable in cash or common shares at the company's option, subject to Canadian Securities Exchange (CSE) approval if shares are used.

The conversion price is C$0.038 per share on a pre-consolidation basis, or C$0.19 post-consolidation. Warrants carry the same exercise price and expire at maturity. The company may accelerate warrant expiry if the volume-weighted average trading price exceeds C$0.09 pre-consolidation for 20 consecutive trading days with minimum daily volume of 50,000 shares.

Eligible finders may receive a 7% cash commission and warrants equal to 7% of shares issuable on conversion of debentures placed through their introductions.

Proceeds are intended for working capital and general corporate purposes. The offering may constitute a related party transaction under Multilateral Instrument 61-101, as company insiders are expected to participate.

Following the offering, the company plans to change its name to Gordon Mining Group Inc., alter its trading symbol from "GLDS" to "GORD," and consolidate shares on a one-for-five basis. Fractional shares resulting from the consolidation will be rounded down. All changes remain subject to regulatory and CSE approval.

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