GTA Announces Closing of First Tranche of Private Placement
BURLINGTON, ONTARIO--(Marketwired - May 2, 2016) - GTA Resources and Mining Inc. (TSX VENTURE:GTA) is pleased to announce that it has closed on the first tranche of its non-brokered private placement financing previously announced on April 11, 2016 and April 26, 2016.
The first tranche consisted of 1,840,000 flow-through share units ("Flow-through Units") for gross proceeds of $92,000, at a price of $0.05 per Flow-through Unit, with each Flow-through Unit consisting of one flow-through share and one common share purchase warrant. Each warrant will be exercisable for one common share at a price of $0.06 for a period of 12 months from the date of closing of the financing. In addition the first tranche consisted of 1,200,000 units ("Units") for gross proceeds of $60,000, at a price of $0.05 per Unit with each Unit consisting of one common share and one common share purchase warrant. Each warrant will be exercisable for one common share at a price of $0.05 for a period of 12 months from the date of closing.
GTA will pay compensation including a cash fee of 3% on $50,000 of the gross amount raised.
GTA will use the net proceeds of the flow-through amount to fund exploration activities on the Northshore Gold Project, owned 51% by GTA. GTA has completed five phases of exploration at Northshore and in this phase among other goals hopes to test the northern area near the former producing Northshore Gold Mine.
The net proceeds of the hard dollar amount will be used for working capital purposes.
Following this transaction there are 36,346,855 GTA common shares issued and outstanding.
About GTA
GTA is a well funded publicly traded mineral exploration company. It is led by an experienced and successful management team and is focused on exploring for gold in Canada.
GTA is a tightly held company having only 36,346,855 shares outstanding of which insiders control approximately 20% of the outstanding shares. The Company's shares trade on the TSX Venture Exchange under the symbol "GTA."
GTA currently has three projects, including the 51%-owned Northshore Gold Project located east of Thunder Bay and west of Hemlo, the 100%-owned Auden Project near Hearst, Ontario; and, the 100%-owned zinc Burnt Pond Project in Newfoundland, proximate to the former producing Duck Pond Mine (copper - zinc).
On behalf of the board of directors
GTA Resources and Mining Inc.
Wayne Reid
President and CEO
Neither the 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 press release.