Desert Mountain Energy Corporation Announces Private Placement
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Each Unit will consist of one Common Share of the Company and one-half of one share purchase warrant (the "Warrants"), where each whole Warrant will allow the subscriber to purchase one additional Common Share of the Company for a period of two years from the date of Closing at a price of CAD $0.33. The expiry of the Warrants may be accelerated at the election of the Company by written notice if the closing price for the Common Shares on the TSX Venture Exchange shall be equal to or greater than CAD $0.60 for a minimum of ten consecutive trading days. Proceeds from the private placement will be utilized for exploration and development of the Company's helium projects, including its upcoming drill program in
Arizona and Oklahoma, as well as working capital and general corporate purposes.
The Company may, in its discretion, pay a finder's fee of up to 7% of the total gross proceeds of the offering in cash and/or securities, where applicable. The Units will be subject to a 4-month hold period. The Company anticipates closing the private placement on or about January 20, 2020, subject to adjustment if deemed appropriate. The private placement is subject to the approval of the TSX Venture Exchange.
The Company continues to be focused on development of its flagship Heliopolis helium project in Arizona's Holbrook Basin and is presently in the permitting process for its upcoming drill program. That program contemplates drilling three shallow wells in different priority target areas in the Basin. At the same time, the Company is also preparing a drill program at its Kight-Gilcrease Sand Unit helium, oil & gas project in Seminole County, Oklahoma.
According to Irwin Olian, CEO of the Company, "We look forward to an exciting year in 2020 with drilling planned for priority targets on our two helium projects in Arizona and Oklahoma."
About Desert Mountain Energy
The Company is an exploratory resource company engaged in exploration and development of helium, oil & gas and mineral properties in the Southwestern United States. Until September 5, 2018, the Company also owned the Yellowjacket Gold Project in Atlin, British Columbia, which it had been developing. The Company has its executive offices in Vancouver, Canada. The Company was incorporated under the laws of the Province of British Columbia, on April 30, 2008, and was formerly named African Queen Mines Ltd. It initially received certain southern African assets in a spin off transaction related to the acquisition of Pan African Mining Corp. by Asia Thai Mining Co., Ltd.
ON BEHALF OF THE BOARD OF DIRECTORS OF
Desert Mountain Energy Corp.
"Irwin Olian"
Irwin Olian
Chairman & CEO
For more information, contact:
Irwin Olian, President and CEO E-mail: tigertail@desertmountainenergy.com Phone: (604) 788-0300 | |
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of the information contained herein. The statements made in this press release may contain certain forward-looking statements that involve a number of risks and uncertainties. Actual events or results may differ from the Company's expectations.
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