Entities linked with company advisor Matt Liddy have given Gold Mountain (GMN) $2 million for its flagship Wabag project in Papua New Guinea.
Overall, the stakeholders have bought over 36 million Gold Mountain shares at 5.5 cents per share. Gold Mountain, on the other hand, is set to issue over 2.5 million shares to satisfy placement fees payable to the investors.
When it comes to their agreement, if the share price of Gold Mountain falls below a 10-day volume-weighted average price (VWAP) of 5.5 cents per share in 6 and 24 months, investors can request for additional shares to adjust for the lower cost.
Gold Mountain has porphyry copper-gold-molybdenum deposits in Papua New Guinea along the Papuan Mobile Belt. Its flagship Wabag Project includes the Sak Creek, Monoyal, and Mt. Wipi.
Recently, the firm has begun its next phase drilling at the Monoyal copper-gold porphyry target within the Wabag project. Due to the pandemic, Wabag was on hold for 6 months and drilling continued earlier this month.
Gold Mountain last traded for 4.4 cents per share.
