Golden Predator Completes $4.32 Million Financing

VANCOUVER, BC / ACCESSWIRE / May 25, 2016 / Golden Predator Mining Corp. (TSX.V: GPY) (the “Company) is pleased to announce the completion of its previously announced private placement. The private placement was fully subscribed, resulting in gross proceeds to the Company of $4,320,000 from the sale of 27,000,000 units (the “Units“) at a price of $0.16 per Unit. Each Unit consists of one common share (the “Shares“) and one share purchase warrant (the “Warrants“). Each Warrant entitles the holder to purchase one additional Share at a price of $0.21 for a period of two years from the date of issue of the Warrants. $904,000 worth of Units are comprised of flow-through shares and non-flow-through warrants, and $3,416,000 worth of Units are comprised of non-flow-through shares and non-flow-through warrants.

As a result of the closing of the financing:

• William M. Sheriff acquired 1.9 million units, and now holds a total of 11.654 million common shares representing 17.48 per cent of the issued and outstanding common shares of the Company. In addition Mr. Sheriff holds 1.9 million warrants, 275,000 stock options, and an option to acquire from Till Capital Ltd. up to 10,312,154 million shares of the Company, which if exercised would increase his percentage ownership to 35.07%;
• Pat DiCapo owns 3.5 million common shares and 4 million warrants, representing 5.25 per cent of the issued and outstanding common shares of the issuer, or 10.61 per cent upon exercise of the warrants. In addition, PowerOne Capital Markets Limited, a joint actor of Mr. DiCapo, acquired ownership and control of 1,274,000 Broker Warrants, each Broker Warrant entitling the Finder to acquire one Broker Unit, representing approximately 3.68% of the Common Shares on a partially diluted basis, assuming exercise of the Broker Warrants and Broker Unit Warrants only, and when taken together with the Common Shares acquired by Mr. DiCapo, representing approximately 8.93% of the current issued and outstanding Common Shares (or approximately 13.72% on a partially diluted basis, assuming exercise of the Warrants, Broker Warrants and Broker Unit Warrants only);
• FCMI Parent Co., an entity controlled by Albert D. Friedberg and members of his immediate family, owns 4 million common shares and 4 million warrants of the issuer comprising 6 per cent of the issued and outstanding common shares of the issuer or 11.32 per cent upon exercise of the warrants;
• McEwen Mining Inc., a publicly traded company listed on the NYSE and TSX, owns 3.125 million common shares and 3.125 million warrants, representing 4.69 per cent of the issued and outstanding common shares of the issuer, or 8.95 per cent upon exercise of the warrants.

The above percentages are calculated based on 66,671,215 shares issued and outstanding and in the case of diluted holdings assumes the exercise of all of the warrants and options beneficially owned by the offeror, and that no other securities, including those convertible into, or exercisable for, the issuer’s securities, are issued, converted or exercised. Prior to the financing, the FCMI Parent Co. and McEwen Mining Inc. did not own any securities of the issuer.

The Units acquired by the purchasers referred to above were acquired for investment purposes, and each of the purchasers or one or more of their affiliates may, depending on market and other conditions, increase or decrease its beneficial ownership of common shares or other securities of the issuer whether in the open market, by privately negotiated agreement or otherwise.

PowerOne Capital Markets Limited acted as a finder in connection with a portion of the Canadian participants in the private placement. An aggregate of 1,274,000 broker warrants (“Broker Warrants“) were issued to the finder, each Broker Warrant entitling the finder to purchase a broker unit of the company (“Broker Unit“) at a price of $0.16 per Broker Unit for a period of two years from the date of closing of the private placement. Each Broker Unit is comprised of one common share and one broker unit warrant (“Broker Unit Warrant“). Each Broker Unit Warrant entitles the Finder to purchase one common share at an exercise price of $0.21 per common share for a period of two years from the date of closing of the private placement.

All securities issued will be subject to a four-month hold period.

Proceeds from the financing will be applied to the Company’s 3 Aces project and Brewery Creek project and general working capital.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any securities. The securities referenced in this news release have not and will not be registered under the U.S. Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

Golden Predator Mining Corp.

Golden Predator Mining Corp., a Canadian gold mineral exploration company, is focused on advancing the 3 Aces Project and Brewery Creek project in Canada’s North. The Company has undertaken a bulk sampling at the 3 Aces project, focused on high grade native gold bearing quartz veins, to define the distribution and grade of gold in the veins. The Company’s Brewery Creek Project is a past producing heap leach gold mine with a Preliminary Economic Assessment, next steps include advancing the project through feasibility and permitting.

For additional information:

Janet Lee-Sheriff
Chief Executive Officer
(214) 304-9552
info@goldenpredator.com
www.goldenpredator.com

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This press release contains forward-looking information that involve various risks and uncertainties regarding future events. Such forward-looking information can include without limitation statements based on current expectations that the private placement will complete as described herein, that the Project will advance through permitting and feasibility. Actual results and future events could differ materially from those anticipated in such information. These and all subsequent written and oral forward-looking information are based on estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice. Except as required by law, the Company assumes no obligation to update forward-looking information should circumstances or management’s estimates or opinions change.

SOURCE: Golden Predator Mining Corp.

ReleaseID: 440389