Toronto, Ontario–(Newsfile Corp. – December 14, 2022) – Further to the press release of Golden Tag Resources Ltd. dated December 7, 2022, Eric Sprott announces that he and 2176423 Ontario Ltd., a company which Mr. Sprott beneficially owns, have entered into a voting support agreement with Golden Tag in connection with Golden Tag’s proposed transaction (Proposed Transaction) pursuant to an Asset Purchase Agreement with First Majestic Silver Corp. and its affiliate to acquire 100% of the assets of the La Parrilla Silver Mine Complex (La Parrilla). Mr. Sprott understands that under the Proposed Transaction, among other things, Golden Tag will issue 143,673,684 common shares or US$20 million at a deemed price of C$0.19 per share and complete two deferred payments, payable in either cash or Golden Tag common shares, at the sole election of Golden Tag, upon certain milestones with respect to La Parrilla being met.
Mr. Sprott and 2176423 Ontario hold 41,604,282 common shares and 2,000,000 warrants representing approximately 19.2% of the issued and outstanding common shares on a non-diluted basis and approximately 20.0% on a partially diluted basis assuming exercise of such warrants.
Mr. Sprott intends to hold the Golden Tag Shares through 2176423 Ontario for investment purposes and to support the Proposed Transaction, and, depending on market or other conditions, may acquire additional securities of Golden Tag. If the Arrangement does not close or the voting support agreement is terminated, Mr. Sprott may acquire additional securities of Golden Tag including on the open market or through private acquisitions or sell the securities including on the open market or through private dispositions in the future depending on market conditions, reformulation of plans and/or other relevant factors.
Golden Tag is located at 22 Adelaide Street West, Suite 2020, Bay Adelaide Centre, Toronto, Ontario M5H 4E3. A copy of 2176423 Ontario’s early warning report will appear on Golden Tag’s profile on the System for Electronic Document Analysis and Retrieval at www.sedar.com and may also be obtained by calling Mr. Sprott’s office at (416) 945-3294 (2176423 Ontario Ltd., 200 Bay Street, Suite 2600, Royal Bank Plaza, South Tower, Toronto, Ontario M5J 2J1).
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/148109