Title: Durango Close First tranche of a Non-Brokered Financing
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Durango Close First tranche of a Non-Brokered Financing
Tickers: XTSX:DGO, PINX:ATOXF
Vancouver, BC / TheNewswire / March 29, 2019 - Durango Resources Inc. (TSX.V-DGO) (Frankfurt-86A1) (OTCQB -ATOXF), (the "Company" or "Durango") announces that it has closed the first tranche of a non-brokered private placement (the "Financing") for gross proceeds of $210,324.93.
The Financing is comprised of a flow through component (the "Flow Through Component") and a non-flow through component (the "Non-Flow Through Component"). The Flow Through Component consists of up to 10,000,000 flow through units at $0.09 ("Flow Through Units"), with each Flow Through Unit being comprised of one common share (each, a "Share") and one share purchase warrant (each, a "Flow Through Warrant"). Each Flow Through Warrant is exercisable for one Share at an exercise price of $0.15 for three (3) years. The Non-Flow Through Component consists of up to 1,333,333 non-flow through units at $0.075 ("Non-Flow Through Units"), with each Non-Flow Through Unit being comprised of one Share and one share purchase warrant (each, a "Non-Flow Through Warrant"). Each Non-Flow Through Warrant is exercisable for one Share at an exercise price of $0.125 for three (3) years.
The Company has issued: (a) 2,002,222 Flow-Through Units in the first tranche for proceeds of $180,199.98; and (b) 401,666 Non-Flow Through Units for proceeds of $30,124.95. All the securities issued in the Financing are subject to a four-month hold period. The Financing is subject to the final approval of the TSX Venture Exchange.
Marcy Kiesman, CEO of Durango stated, "We are extremely pleased with our IP results to date on the Trove Property and look forward to continuing to work on the delineating drill targets we plan to drill this spring and/or summer. The Windfall Lake gold deposit (held by Osisko Mining) is one of the highest-grade resource-stage gold projects in Canada, and our crew is anxious to begin exploration drilling at Trove which is situated on trend with Osisko's gold mineralization."
All proceeds raised in the Flow Through Component will be used for flow-through eligible exploration expenses on Durango's Trove Property located in Windfall Lake, Quebec. In connection with this tranche of the offering, the Company paid aggregate finders' fees to qualified finders of $10,240, representing eight percent of the gross proceeds in respect of certain subscriptions. The Company also issued 145,911, non-transferrable finders' warrants to qualified finders', with each finders' warrant being exercisable to acquire one common share at an exercise price of fifteen cents until March 28, 2020.
The proceeds raised in the Non-Flow Through Component will be used for general working capital and to pay finder's fees associated with the Flow-Through Component. No finders' fees will be payable in connection with the Non-Flow Through Component.
Durango expects additional tranches of the Financing to close in the near future.
Application for Extension of Warrants
Further, Durango plans to apply to the TSX Venture Exchange for approval to extend the respective expiry dates of 5,005,152 common share purchase warrants (the "2017 Warrants") issued to subscribers pursuant to the private placement of units which closed in three tranches on June 7, 9, 20, 2017. The 2017 Warrants currently have respective expiry dates of June 7, 9, 20, 2019. Durango intends to extend the respective expiry dates of the warrants by two (2) years to June 7, 9, and 20, 2021.
The $0.10 exercise price and all other terms of the 2017 Warrants will remain unchanged for the extended exercise period. The extension is subject to approval of the TSX Venture Exchange pursuant to Section 3 of TSXV Policy 4.1.
The technical contents of this release were approved by Joanne Freeze, P.Geo., an independent Qualified Person as defined by National Instrument 43-101. The property has not yet been the subject of a National Instrument 43-101 report.
Durango is a natural resources company engaged in the acquisition and exploration of mineral properties. The Company is positioned for discovery with a 100% interest in a strategically located group of properties in the Windfall Lake gold camp in the Abitibi region of Quebec, Canada.
For further information on Durango, please refer to its SEDAR profile at www.sedar.com.
Marcy Kiesman, CEO
Telephone: 604.428.2900 or 604.339.2243
This document may contain or refer to forward-looking information based on current expectations and the impact on the Company of these events. Forward-looking information is subject to significant risks and uncertainties, including market conditions, as actual results may differ materially from forecasted results. Forward-looking information is provided as of the date hereof and we assume no responsibility to update or revise them to reflect new events or circumstances. For a detailed list of risks and uncertainties relating to Durango, please refer to its prospectus filed on its SEDAR profile at www.sedar.com.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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