March 17, 2017 / TheNewswire / Vancouver, British Columbia - Guyana Goldstrike Inc. (the "Company") (TSXV: GYA) is pleased to announce that in connection with the acquisition of Romanex Guyana Exploration Ltd. ("Romanex") it has completed a non-brokered private placement of 8,885,235 units (each, a "Unit") at a price of $0.20 per Unit for gross proceeds of $1,777,047. Each "Unit" consists of one common share of the Company, and one-half-of-one common share purchase warrant (each whole warrant, a "Warrant"). Each Warrant entitles the holder to acquire an additional common share of the Company at a price of $0.30 per share for a period of twenty-four months.
In connection with closing of the private placement, the Company paid fees of $45,720 and issued 203,600 Warrants to eligible finders' who introduced subscribers to the Company. All securities issued in connection with the private placement are subject to a four-month-and-one-day statutory hold period.
Following completion of the private placement, trading in the common shares of the Company will resume on the TSX Venture Exchange at the open of markets on March 21, 2017, under the new symbol "GYA".
In connection with closing of the private placement, Charles Hugh Maddin acquired 785,000 Units, consisting of 785,000 common shares of the Company, and 392,500 Warrants. Cambrian Capital Corp., a holding company controlled by Mr. Maddin, holds 300,000 of the acquired Units.
Following completion of the private placement, Mr. Maddin and Cambrian Capital Corp. have ownership and control of 3,648,750 common shares of the Company, representing approximately 12.6% of the Company's current issued and outstanding common shares, and 2,012,500 common share purchase warrants. Mr. Maddin and Cambrian Capital Corp. would have ownership and control of 5,661,250 common shares of the Company, representing approximately 18.2% of the then issued and outstanding common shares of the Company, assuming exercise of only the warrants held by each.
The Units were acquired by each of Mr. Maddin and Cambrian Capital Corp. for investment purposes. In the future, additional securities of the Company may be acquired or disposed of, through the market, privately or otherwise, as circumstances or market conditions may warrant.
For further information and to obtain a copy of the early warning report filed under applicable Canadian provincial securities legislation in connection with the acquisition, please go the Company's profile on SEDAR or contact Peter Berdusco at 1.877.844.4661.
The Company also announces that it will grant 2,900,000 incentive stock options to certain directors, officers and consultants of the Company. The options are exercisable at a price of $0.25 for a period of five years. Completion of the grant of options remains subject to the approval of the TSX Venture Exchange.
On behalf of the Board,
Guyana Goldstrike Inc.
Peter Berdusco, Chief Executive Officer
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release may include forward-looking statements that are subject to risks and uncertainties. All statements within, other than statements of historical fact, are to be considered forward looking. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, continued availability of capital and financing, and general economic, market or business conditions. There can be no assurances that such statements will prove accurate and, therefore, readers are advised to rely on their own evaluation of such uncertainties. We do not assume any obligation to update any forward-looking statements except as required under the applicable laws.