Spanish Mountain Gold: Amending Financing Terms and Strengthening Project Development

Spanish Mountain Gold Ltd. (TSXV: SPA) has provided an update on its financing efforts, amending the terms of its charity flow-through units (Charity FT Units) and aiming to raise C$6,500,000 through a brokered "best efforts" private placement. The revised Offering Document, accessible on the Company's website and Sedarplus.ca, outlines the amended structure and pricing of the Charity FT Units.

The amended Charity FT Units consist of one flow-through share (FT Share) and one common share purchase warrant (Warrant), priced at $0.20 per unit. Each Warrant is exercisable at $0.18 per share for two years. This revised structure offers investors a more attractive entry point, with a lower price per unit and a discounted Warrant exercise price. The FT Shares qualify as "flow-through shares" under the Income Tax Act (Canada), providing investors with tax benefits equal to 15% of their investment in the FT Share.

The Brokered Offering is expected to close on or around November 15, 2024, subject to customary closing conditions, including the approval of the TSX Venture Exchange. The Company has engaged agents to market the Offering, with finder's fees and commissions of up to 7% (C$455,000) available to incentivize their efforts. These agents play a crucial role in promoting the Offering to a broader range of investors, potentially increasing the likelihood of a successful financing round.

The timing of the Brokered Offering aligns with Spanish Mountain Gold's project development plans. The Company aims to advance its Spanish Mountain Gold Project towards construction, with an integrated Whittle Enterprise Optimization to identify value-add improvements and increase understanding of high-grade geologic controls. The financing will support these efforts, as well as the completion of a Preliminary Economic Assessment (PEA) and combined NI 43-101 technical report, expected by Q1 2025.



In conclusion, Spanish Mountain Gold's amended financing terms and engaged agents position the Company to secure the necessary funds for its project development plans. The revised Charity FT Units offer investors an attractive entry point, with tax benefits and a discounted Warrant exercise price. The Company's focus on advancing its Spanish Mountain Gold Project and completing a PEA demonstrates its commitment to creating value for shareholders and stakeholders.