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Sanatana Resources kicks off 2022 exploration program and closes second tranche of private placement

Published: 09:53 02 Jun 2022 EDT

Sanatana Resources Inc. -- kicks off 2022 exploration program and closes second tranche of private placement
The company said the proceeds will be used to fund the upcoming drilling and exploration of the Oweegee Dome project and for general working capital

Sanatana Resources Inc. (TSX-V:STA) has closed the second tranche of its previously announced non-brokered private placement of 2.07 million units of the company at a price of $0.15 per unit for gross aggregate proceeds of $310,500.

The Vancouver-based mineral exploration company said the proceeds of the private placement will be used to fund the upcoming drilling and exploration of the Oweegee Dome project and for general working capital.

In a statement, Sanatana CEO Peter Miles said: "We are mobilizing to Bell 2 Lodge today in preparation for our upcoming 2022 exploration and drilling program. Exploration including geophysics will begin shortly and drilling is expected to begin around July 1, 2022.”

READ: Sanatana Resources closes first tranche of its non-brokered private placement for gross aggregate proceeds of approximately $2,065,00

He added: “With the second tranche closing, we will have approximately $4.2 million in cash and prepaid exploration expenses on hand as we begin our 2022 field season. We look forward to commencing our initial drill program at Oweegee."

Sanatana said that each unit issued in the second tranche consisted of one common share and one-half of one common share purchase warrant, with each warrant entitling the holder to acquire one common share at a price of $0.20 for a period of two years following the closing of the second tranche of the private placement.

The firm disclosed that Buddy Doyle and Ian Smith, insiders of the company, subscribed for 150,000 units ($22,500) and 330,000 units ($49,500) respectively under the private placement.

In connection with the private placement, Sanatana paid aggregate cash finder's fees totalling $13,410 and issued 89,400 finder's warrants to a qualified arm's length finder. Each finder's warrant is exercisable into one common share at an exercise price of $0.20 per finder's warrant share on or before June 1, 2024.

The company noted that all securities issued following the placement are subject to a statutory hold period expiring on October 2, 2022, in accordance with securities legislation.

Sanatana Resources is a mineral exploration and development company focused on high-impact properties in Canada.

Contact the author Uttara Choudhury at uttara@proactiveinvestors.com

Follow her on Twitter: @UttaraProactive

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