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VANCOUVER, BC – Gainey Capital Corp. (the “Company” or “Gainey”) (TSX-V:GNC) is pleased to announce that it has closed the second, and final tranche of its previously announced non-brokered private placement by issuing an additional 4,132,316 units at a price of $0.12 per unit to raise gross proceeds of $495,878 with all securities issued having a four-month hold period which expires on May 9, 2018. Total gross proceeds of the Offering are $1,699,558 with a total of 14,162,986 shares, 14,162,986 warrants, 75,000 Finders’ shares, and 325,000 Finders’ Warrants being issued.
As previously announced, each Unit in this offering consists of one common share in the capital of the Company (each a “Common Share”) and one share purchase warrant (a “Warrant”). Each full warrant entitles the Unit holder to purchase one (1) additional GNC common share at a price of $0.24 per share at any time within 36 months of the closing.
With respect to finders’ fees, the Company will pay an aggregate of $30,000 in cash, issue 75,000 shares, and issue 325,000 Finders Warrants in connection with this offering. The Company issued 250,000 Finders’ warrants exercisable at a price of $0.16 for a period of 24 months and 75,000 Finders’ warrants at an exercise price of $0.24 for a period of 36 months, and 75,000 Finders’ shares.
The net proceeds of the Offering will be used to advance exploration activities at the Company’s Mexican El Colomo property as well as for general working capital.