VANCOUVER, BC / ACCESSWIRE / September 18, 2019 / Blue Lagoon Resources Inc. (the "Company") (CSE:BLLG) (FSE:7BL) (OTC PINK:BLAGF) is pleased to announce that it has completed the first tranche of its non-brokered private placement (the "Offering") described in its news release dated September 16, 2019. In connection with the first tranche closing, the Company issued 300,000 common shares at a price of $1.00 per share for gross proceeds of $300,000.
Rana Vig, President and CEO of the Company, subscribed for $300,000 of the Offering. As insiders of the Company participated in the Offering, it is deemed to be a "related party transaction" within the meaning of Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions ("MI 61- 101"). The Company is relying on the exemptions from the formal valuation and minority approval requirements contained in Sections 5.5(a) and 5.7(1)(a) of MI 61-101, on the basis that the fair market value of the transaction does not exceed 25% of the Company's market capitalization. The Company will be filing a material change report in respect of the related party transaction on SEDAR less than 21 days prior to the closing of the transaction due to the fact that the Company wished to close the transaction as soon as practicable.
The Company intends to use the funds to conduct mineral exploration work to advance its properties as well as for general working capital. The securities issued to Mr. Vig will be subject to a hold period expiring six months and one day from the date of issuance.
For further information, please contact:
President and Chief Executive Officer
Email: [email protected]
The CSE has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
SOURCE: Blue Lagoon Resources Inc.