Tickers: XTSX:DME, PINX:DMEHF
Vancouver, British Columbia - May 30 2020 - DESERT MOUNTAIN ENERGY CORP. (the "Company") (TSXV:DME), (OTC:DMEHF), Frankfurt: QM01)) is pleased to announce that it is proceeding with a non-brokered private placement offering to raise gross
proceeds of not less than CAD $500,000 up to CAD $1.0 Million. Under the terms of the private placement, the Company will offer for sale a minimum of 1,428,571 Units up to a maximum of 2,857,143 Units (the "Units") at CAD $0.35 per Unit. The Company may in its discretion increase the size of the offering by a further 20% to a maximum of 3,428,572 Units.
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 $0.52. 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 $0.90 for a minimum of ten consecutive trading days. Proceeds from the private placement will be utilized for the Company's upcoming helium drill program which is anticipated to commence this June as well as for 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 in June. The private placement is subject to the approval of the TSX Venture Exchange.
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.
Chairman & CEO
For more information, contact:
Irwin Olian, President and CEO
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.
Copyright (c) 2020 TheNewswire - All rights reserved.