August 4, 2016
Logan Resources Ltd. (TSX-V: LGR) ('Logan' or the 'Company') announces it has closed its previously announced non-brokered private placement (the 'Offering') (see Logan Resources press releases dated July 7, 2016 and July 20, 2016). The Company has issued 22,000,000 units for gross proceeds of $2.2 million. Each unit consists of one common share and one common share purchase warrant (each whole warrant, a 'Warrant'). Each Warrant is exercisable to acquire one common share for a period of 36 months at an exercise price equal to $0.30.
The Company intends to use the net proceeds of the Offering to continue to evaluate and explore the mineral properties as per the Company's option agreement with Pilot Gold (USA) Inc. ('Pilot Gold') and for general corporate and working capital purposes. The closing of the Offering was a pre-condition to the completion of the transaction with Pilot Gold (the 'Transaction') that is described in the Company's press releases dated July 7, 2016 and July 20, 2016. The Transaction has received the conditional approval of the TSX Venture Exchange ('TSX-V'), but remains subject to final approval. The final condition for final TSX-V is approval of an independent technical report and the TSX-V is currently reviewing a draft of the report.
Logan paid a finder's fee on certain subscriptions equal to 5% of the gross proceeds received from such subscriptions. The finder's fees were payable in common shares issued at a price of $0.10 per common share and resulted in a total of 402,500 common shares being issued to finders.
The Company also announces it has issued 1,000,000 common shares of the Company at a deemed price of $0.10 per share to settle a total of $100,000 in outstanding debt (see July 20, 2016 press release). The common shares were issued in escrow subject to the final approval of the TSX-V for the shares for debt transaction.
All securities issued in the Offering and for the debt settlement are subject to a statutory four month hold period expiring on December 4, 2016.
This news release does not constitute an offer of securities for sale in the United States. The securities being offered have not been, nor will they be, registered under the Unites States Securities Act of 1933, as amended, and such securities may not be offered or sold within the United States absent U.S. registration or an applicable exemption from U.S. registration requirements.
About Logan
Logan Resources Ltd. is a mineral exploration company that specializes in acquiring, exploring and advancing mineral properties. For more information on the property portfolio and Logan, please visit www.loganresources.ca.
LOGAN RESOURCES LTD.
On behalf of the Board
'Carlo Valente'
Chief Financial Officer
For further information regarding this press release, please contact:
Investor Relations
T: 604-681-8030 x 240
F: 604-681-8039
E: This email address is being protected from spambots. You need JavaScript enabled to view it.'>[email protected]
This email address is being protected from spambots. You need JavaScript enabled to view it.'>www.loganresources.ca
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) has reviewed or accepts responsibility for the adequacy or accuracy of this release.