Generic Gold Announces Closing of $7M Private Placement of Units and Flow-Through Units
Toronto, August 11, 2020 - Generic Gold Corp. (CSE: GGC) (FSE: 1WD) ("Generic Gold" or the "Company") is pleased to announce that further to its press release of June 27, 2020, the Company has completed its previously announced "best-efforts" brokered private placement financing through the issuance of an aggregate of 16,858,298 units (the "Units") of the Company at a price of $0.35 per Unit and an aggregate of 2,857,500 flow-through units (the "FT Units" and together with the Units, the "Offered Securities") of the Company at a price of $0.40 per FT Unit for gross proceeds of $7,043,404.30 (the "Offering"). The Offering was led by StephenAvenue Securities Inc., as sole agent and sole bookrunner (the "Agent").
Each Unit is comprised of one common share (each, a "Common Share") in the capital of the Company and one Common Share purchase warrant (each, a "Unit Warrant"). Each Unit Warrant entitles the holder thereof to acquire one Common Share at a price of $0.50 until August 10, 2022. Each FT Unit is comprised of one Common Share, which shall qualify as "flow-through shares" (as such term is defined in subsection 66(15) of the Income Tax Act (Canada)) (each, a "FT Share") and one-half of one common share purchase warrant, issued on a non-flow-through basis (each, whole warrant a "FT Unit Warrant"). Each FT Unit Warrant entitles the holder thereof to purchase one additional Common Share, issued on a non-flow-through basis, at a price of $0.50 until August 10, 2022.
The net proceeds from the sale of the Units will be used for general working capital and exploration purposes. The gross proceeds from the sale of the FT Units will be used by the Company to incur eligible "Canadian exploration expenses" that will qualify as "flow-through mining expenditures" (as such terms are defined in the Income Tax Act (Canada)) (the "Qualifying Expenditures") related to the Company's projects in Canada. All Qualifying Expenditures will be renounced in favour of the subscribers of the FT Units effective December 31, 2020. It is anticipated that most of the funds derived from the sale of the FT Units will be used to explore the Company's recently acquired Belvais project.
Richard Patricio, President and CEO of Generic Gold, stated, "We are very excited for this opportunity to advance exploration on Generic Gold's properties, including the newly acquired Belvais project located in Quebec. We look forward to updating the market on a planned exploration program."
As consideration for the services provided by the Agent in connection with the Offering, the Agent received: (i) a cash commission of $394,524.26; and (ii) an aggregate of 1,109,147 compensation warrants ("Compensation Warrants"). Each Compensation Warrant entitles the holder thereof to acquire one Common Share at a price of $0.40 until August 10, 2022.
The completion of the Offering is subject to certain closing conditions including, but not limited to, the receipt of all necessary regulatory and other approvals including the final approval of the Canadian Securities Exchange. All Offered Securities are subject to a statutory hold period of four months and one day from the Closing Date.
The Offered Securities have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the Offered Securities in any State in which such offer, solicitation or sale would be unlawful.
About Generic Gold
Generic Gold is a Canadian mineral exploration company focused on gold projects in the Abitibi Greenstone Belt in Quebec, Canada and Tintina Gold Belt in the Yukon Territory of Canada. The Company's Quebec exploration portfolio consists of three properties covering 8,148 hectares proximal to the town of Normétal and Amex Exploration's Perron project. The Company's Yukon exploration portfolio consists of several projects with a total land position of greater than 35,000 hectares, all of which are 100% owned by Generic Gold. Several of these projects are in close proximity to significant gold projects, including Goldcorp's Coffee project, Victoria Gold's Eagle Gold project, White Gold's Golden Saddle project, and Western Copper & Gold's Casino project. For information on the Company's property portfolio, visit the Company's website at genericgold.ca.
For further information contact:
Generic Gold Corp.
Richard Patricio, President and CEO
Tel: 416-456-6529
rpatricio@genericgold.ca
StephenAvenue Securities Inc.
Daniel Cappuccitti
Tel: 416-479-4478
ecm@stephenavenue.com
NEITHER THE CANADIAN SECURITIES EXCHANGE NOR THEIR REGULATION SERVICES PROVIDERS ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
Certain statements in this press release are "forward-looking" statements within the meaning of Canadian securities legislation. All statements, other than statements of historical fact, included herein are forward-looking information. Forward-looking statements are necessarily based upon the current belief, opinions and expectations of management that, while considered reasonable by the Company, are inherently subject to business, economic, competitive, political and social uncertainties and other contingencies. Many factors could cause the Company's actual results to differ materially from those expressed or implied in the forward-looking statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. The Company does not undertake to update any forward-looking statements or forward-looking information that are incorporated by reference herein, except in accordance with applicable securities laws. Investors are cautioned not to put undue reliance on forward-looking statements due to the inherent uncertainty therein. We seek safe harbour.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/61465