VANCOUVER, British Columbia, Feb. 26, 2018 (GLOBE NEWSWIRE) -- Core Gold Inc. ("Core Gold" or the "Company") (TSX-V:CGLD)(OTCQX:CGLDF) is pleased to announce that it intends to conduct an offering, on a non-brokered private placement basis, of up to 14,166,666 units of the Company (the "Units") at a subscription price of $0.30 per Unit for aggregate gross proceeds of up to $4,250,000 (the "Private Placement"). Each Unit will consist of one common share of the Company (each, a "Common Share") and one-half of one Common Share purchase warrant (each whole Common Share purchase warrant, a "Warrant"). Each Warrant will entitle the holder to purchase one Common Share at a price of $0.45 for a period of two (2) years following the closing of the Private Placement, subject to acceleration in the event that the closing price of the Company’s Common Shares is $0.60 per share or higher over a period of 10 consecutive trading days. All securities issued pursuant to the Private Placement will be subject to a hold period that expires four months and a day from the closing date in accordance with the rules and policies of the TSX Venture Exchange (the "TSXV") and applicable Canadian securities laws.
The Company intends to use the net proceeds of the Private Placement for expenditure related to restoration of Elipe S.A.’s (Company’s wholly owned Ecuadorian subsidiary) good corporate standing, general corporate purposes and working capital.
Upon closing of the Private Placement, the Company may pay a cash finder's fee to one or more arm's length parties equal to 7% of the aggregate gross proceeds raised under the Private Placement from subscribers introduced by such parties. The Private Placement is expected to close on or about March 16, 2018 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSXV.
This press release shall not constitute an offer to sell or solicitation of an offer to buy the securities in any jurisdiction. The securities will not be and have not been registered under the United States Securities Act of 1933 and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirements.