Funding in HighGold Closes C$9.3 Million Bought Deal Private Placement
Vancouver, British Columbia--(Newsfile Corp. - December 5, 2019) - HighGold Mining Inc. (TSXV: HIGH) ("HighGold" or the "Company") is pleased to announce that it has closed its previously announced bought deal private placement for aggregate gross proceeds of C$9,304,000 (the "Offering").
The Offering consisted of a combination of: (i) 1,280,000 (C$2,304,000) common shares of the Company issued on a flow-through basis (the "FT Shares") at a price of $1.80 per FT Share; and (ii) 5,600,000 (C$7,000,000) common shares of the Company (the "Common Shares") at a price of $1.25 per Common Share. The FT Shares and the Common Shares shall be collectively referred to as the "Offered Securities".
Sprott Capital Partners LP, Canaccord Genuity Corp. and Cormark Securities Inc. (collectively, the "Underwriters") acted as underwriters for the Offering. In connection with the Offering, the Underwriters received a cash fee in an amount equal to 6.0% of the gross proceeds of the Offering.
An amount equal to the gross proceeds from the issuance of the FT Shares will be used for Canadian exploration expenses that will qualify as "flow-through mining expenditures", as defined in subsection 127(9) of the Income Tax Act (Canada) and which qualifies as an "eligible Ontario exploration expenditure" within the meaning of subsection 103(4) of the Taxation Act, 2007 (Ontario).
The net proceeds from the issuance of the Common Shares will be used for ongoing exploration and development work on the Company's properties, and for general corporate purposes.
The Offered Securities are subject to a hold period of four months and one day from the date of issue in accordance with applicable Canadian securities laws. The Offering is subject to the final approval of the TSX Venture Exchange.