DESERT MOUNTAIN ENERGY CLOSES $4,000,000 PRIVATE PLACEMENT
Vancouver, British Columbia — DESERT MOUNTAIN ENERGY CORP. (the “Company”) (TSX.V: DME, U.S. OTC: DMEHF, Frankfurt: QM01) has closed its non-brokered private placement previously announced on Sept. 14, 2020, raising gross proceeds of $4,000,000. Under the Offering the Company issued 2,500,000 units (the ” Units “) at a price of CAD $1.60 per Unit. Each Unit is made up of one common share of the Company and one share purchase warrant (each, a ” Warrant “), with each whole Warrant allowing the subscriber to purchase one additional common share for a period of two years at a price of CAD $2.00. The expiry of the warrants may be accelerated at the sole discretion of the Company by written notice or news release if the closing price for the Common Share on the TSX Venture Exchange shall be equal to or greater than CAD $3.50 for a minimum of ten (10) consecutive trading days. Accordingly, the Company issued at total of 2,500,000 Common Shares in the Offering as well as 2,500,000 whole warrants.
The Company plans to use the proceeds for exploration, and development of the Company’s helium processing facilities, required power generation facilities, working capital and general corporate expenses.
In connection with the Offering, the Company paid an aggregate finders fees of (seven) 7% percent of the total gross proceeds of the Offering in cash and/or equivalent in Units along with 7% in finder warrants at the Offering price. All securities issued in connection with the Offering will be subject to a customary 4-month hold pursuant to applicable Canadian Securities Laws.
According to Robert Rohlfing, CEO of the Company, “we greatly appreciate the overwhelming support we have garnered from the investment community around the world. Particularly considering the extremely challenging market environment.”
About Desert Mountain Energy
Desert Mountain Energy Corp. is a publicly traded exploration and resource company focused on the discovery and development of rare earth gas fields in the US. The Company is primarily looking for elements deemed critical to the green energy and high technology industries.
We seek safe harbor
Chairman & CEO
For more information, contact:
Don Mosher, Vice President of Capital Markets
E-mail: [email protected]
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.