Emgold announces flow-through private placement and closes first tranche
VANCOUVER, BBC / ACCESSWIRE / July 16, 2021 / Emgold Mining Corporation (TSXV: EMR) (OTC PINK: EGMCF) (FRA: EMLM) (BSE: EMLM)(“Emgold” or the “Company”) announces its intention to carry out a flow-through private placement without an intermediary (the ‘FT offer‘) composed of a maximum of 12,500,000 units of the Company (the’FT units‘) at a price of CA $ 0.08 per FT unit (the’FT offer price‘) to raise up to CA $ 1,000,000. Each FT unit will consist of one ordinary share in the capital of the Company (a “Ordinary share‘) and a half non-transferable common share purchase warrant (each whole common share purchase warrant, one’To guarantee‘). Each warrant may be exercised to acquire one common share of the Company at an exercise price of Cdn $ 0.10 per common share for a period of 24 months from the date of issue. The FT offer is subject to a minimum subscription amount of CA $ 3,000.
Certain insiders of the Company may acquire FT units in connection with FT’s placement. Any participation by insiders in the FT Offer would constitute a “related party transaction” as defined in multilateral instrument 61-101. Protection of holders of minority securities in special transactions (‘MI 61-101’). However, the Company expects such participation to be exempt from the formal valuation and minority shareholder approval requirements of NI 61-101, as neither the fair market value of the FT units subscribed by insiders nor the consideration for units paid by these insiders would exceed 25% of the market capitalization of the Company.
Emgold intends to use the net proceeds of the FT Offering for qualifying exploration of its properties located in Quebec. The Company may pay finder’s fees, including in cash (the “finder’s fees”) and warrants (the “finder’s fees”Researcher’s mandates‘) on a portion of the placement, subject to compliance with the policies of the TSX Venture Exchange and applicable securities legislation. Closing of FT’s offering is subject to the approval of the TSX Venture Exchange.
The securities issued within the framework of FT’s placement, and all the ordinary shares that may be issued upon the exercise of these securities, will be subject to a statutory holding period expiring four months and one day from the date of issue.
Emgold closes the first tranche of its FT offer
Emgold announces that it has completed the first installment (the ‘First installment‘) FT’s placement through the issuance of 10,000,000 FT units issued at a price of CA $ 0.08 per FT unit, for gross proceeds of CA $ 800,000. Each unit consists of one common share of the company and one non-transferable half warrant. Each full warrant will allow its holder to purchase, for a period of 24 months from the date of issue, one additional common share of the Company at a price of CA $ 0.10 per share. All ordinary shares issued in connection with FT’s placement and ordinary shares to be issued upon exercise of the warrants will be subject to a statutory hold period of four months from the date of issue.
FT Shares will allow their holder to benefit from the applicable tax advantages, in accordance with the provisions of the Income Tax Act (Canada). The proceeds from the FT financing will be used for eligible exploration on the Company’s Canadian properties located in Quebec.
Finder’s fees of CA $ 60,000 are payable in cash and 750,000 finder’s warrants will be issued in conjunction with this first tranche of FT’s offering. The finder’s warrants will allow their holder to purchase, for a period of 24 months from the date of issue, 750,000 additional common shares of the company at a price of $ 0.10 per common share.
Emgold is a gold and base metals exploration company focused on Nevada and Quebec. The Company’s strategy is to seek quality acquisitions, add value to these assets through exploration and monetize them through sales, joint ventures, options, royalties and other transactions. in order to create value for our shareholders (business model of acquisition and disposal (A&D)).
In Nevada, Emgold’s Golden Arrow property, the Company’s principal asset, is an advanced stage gold and silver property with a well-defined measured and indicated resource. New York Canyon is a base metals property subject to a joint venture participation option agreement with Kennecott Exploration, a subsidiary of Rio Tinto Plc (RIO). The Mindora Property is a gold, silver and base metals property located just 12 miles from New York Canyon. Buckskin Rawhide East is a gold and silver property leased to Rawhide Mining LLC, which operates the adjacent Rawhide mine and represents a royalty opportunity for the Company.
In Quebec, the Casa Sud property is an early stage gold property adjacent to that of Hecla Mining Corporation (HL) operates the Casa Berardi mine. The East-West property is adjacent and striking gold property with Wesdome Gold Mine Ltd. (WDO) Kiena Complex and O3 Mining Corporation (OIII) Marban property. Emgold also owns 1% NSR in the Troilus North property, part of the Troilus Mine property currently being explored by Troilus Gold Corporation (TLG).
Please note that the location of the Emgold properties adjacent to producing or past producing mines does not guarantee successful exploration on the Emgold properties or that mineral resources or reserves will be demarcated. For more information about the Company, investors should visit the Company’s website at www.emgold.com or consult the documents filed by the Company available at www.sedar.com.
This press release does not constitute an offer to sell the aforementioned securities in the United States. The foregoing securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “1933 Act”) or any applicable state securities law and may not be offered or sold in the United States or to, or on behalf of or for the benefit of, persons in the United States (as defined in Regulation S under the 1933 Act) or persons in the United States without registration or applicable exemption from these registration requirements. This press release does not constitute an offer to sell or the solicitation of an offer to buy and there will be no sale of the aforementioned securities in any jurisdiction in which such an offer, solicitation or sale would be illegal.
On behalf of the board of directors
David G. Watkinson, ing.
President and CEO
For more information, please contact:
David G. Watkinson, ing.
Phone. : 530-271-0679, ext. 101
Email: [email protected]
Neither the TSX Venture Exchange nor its Regulation Services Provider (as the term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Caution regarding forward-looking statements
Certain information contained in this press release constitutes “forward-looking information” or “forward-looking statements” (collectively, “forward-looking information”). Without limiting the foregoing, such forward-looking information includes statements regarding the process and completion of the offering, the use of the proceeds of the offering and any statements regarding the business plans, expectations and objectives of the Company. . In this press release, words such as “may”, “would”, “could”, “will”, “likely”, “believe”, “expect”, “anticipate”, “intend” “,” plan “,” estimate “and similar words and their negative form are used to identify forward-looking information. Forward-looking information should not be construed as a guarantee of future performance or results, and will not necessarily constitute indications precise as to whether, or at what times or by which, such future performance will be achieved.The forward-looking information is based on information available at the time and / or on the good faith belief of the management of the Company concerning future events and are subject to known or unknown risks, uncertainties, assumptions and other unforeseeable factors, many of which are beyond the control of the company. s factors and assumptions and other underlying the forward-looking information contained in this press release, please consult the management report and the most recent financial statements of the Company as well as the other documents filed by the Company with the commissions Canadian Securities and the discussion of the risk factors set out therein. These documents are available at www.sedar.com under the Company profile and on the Company’s website, https://emgold.com/. The forward-looking information presented here reflects the Company’s expectations as of the date of this press release and is subject to change after this date. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.
SOURCE: Emgold Mining Company
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