Desert Mountain Energy Closes $1.6 Million Private Placement Financing
Vancouver, February 28, 2020 - Desert Mountain Energy Corp. (the "Company") (TSXV:DME) U.S. (OTC:DMEHF) (Frankfurt: QM01) is pleased to announce that it has closed its non-brokered private placement previously announced on December 17, 2019 (the "Offering"), raising gross proceeds of CAD $1,602,850.16. Under the terms of the Offering, the Company issued 7,285,682 Units (the "Units") at a price of CAD $0.22 per Unit. Each Unit consists of one common share of the Company (each, a "Common Share") and one-half of one share purchase warrant (each, a "Warrant"), with each whole Warrant allowing the subscriber to purchase one additional Common Share for a period of two years 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. Accordingly, the Company issued a total of 7,285,682 Common Shares in the Offering as well as 3,642,841 whole Warrants.
The Company plans to use the proceeds of the Offering 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.
In connection with the Offering, the Company paid aggregate finder's fees of $68,160.38 in cash and issued 309,729 non-transferable finder's Warrants, each of which is exercisable into one Common Share for a period of two years at a price of CAD $0.22 per Common Share. All securities issued in connection with the Offering will be subject to a customary 4-month hold period pursuant to applicable Canadian securities laws.
According to Irwin Olian, CEO of the Company, "We are very gratified with the strong investor response to the Offering and appreciate the support we have received from the investment community, particularly considering the difficult market environment at this time. 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.