News out this morningBusy Boys!
Snowline Gold arranges $19.16M investment from B2Gold
2023-03-14 09:17 ET - News Release
See News Release (C-SGD) Snowline Gold Corp
Mr. Scott Berdahl of Snowline Gold reports
SNOWLINE GOLD ANNOUNCES STRATEGIC INVESTMENT BY B2GOLD THROUGH NON-BROKERED PRIVATE PLACEMENT
B2Gold Corp. has agreed to invest into Snowline Gold Corp. B2Gold will be the purchaser of common shares of the company on the back end of an initial non-brokered flow-through private placement arranged by Snowline. Pursuant to the initial non-brokered private placement, up to 3,941,048 flow-through (FT) common shares of the company will be issued at a price of $4.862 per FT share for aggregate gross proceeds to the company of up to $19,161,375.
"We are excited to welcome B2Gold as a growth-focused, long-term, value-driven investor," said Scott Berdahl, chief executive officer and director of Snowline. "B2Gold is a major global gold producer with a strong track record of growth built on a demonstrated commitment to communities, sustainable mining and employee safety. Their interest in Snowline is a sound endorsement of the company we are building along with the quality and geological potential of our assets."
Clive Johnson, president and CEO of B2Gold, added: "We'd like to commend the Snowline exploration and management teams for their strong exploration work conducted thus far across their large mineral tenure in the Selwyn basin. Their highly prospective land portfolio boasts district-scale, untapped greenfield potential and we believe their Valley discovery to be one of the more significant discoveries in Canada in recent history. We have great respect for what Snowline has achieved and look forward to following the progress of their exceptional team moving forward."
The gross proceeds from the issue and sale of the FT shares will be used to support advancement of exploration on the company's Yukon territory mineral properties, which will qualify as Canadian exploration expenses and flow-through mining expenditures, as those terms are defined in the Income Tax Act (Canada), which will be renounced to the initial purchasers of the FT shares with an effective date no later than Dec. 31, 2023.
The common shares to be purchased by B2Gold on the back end of the private placement, combined with three million common shares of the company recently acquired by B2Gold on the open market, will represent a total position of approximately 5 per cent of the issued and outstanding common shares of the company upon completion of the offering. B2Gold will be granted a right to maintain its pro rata ownership of up to 5 per cent in connection with future equity financings, as well as following the exercise of convertible securities of the company.
It is expected that the closing of the offering will occur on or about March 28, 2023; closing is subject to the satisfaction of certain conditions, including receipt of acceptance of the Canadian Securities Exchange. All securities issued in connection with the offering will be subject to a hold period of four months and one day from the date of closing, in accordance with applicable Canadian securities laws.
About Snowline Gold Corp.
Snowline Gold is a Yukon-focused gold exploration company with a 17-project portfolio covering over 280,000 hectares. The company is exploring its flagship over-137,000-hectare Rogue and Einarson gold projects in the highly prospective yet underexplored Selwyn basin. Snowline's project portfolio sits within the prolific Tintina gold province, host to multiple million-ounce-plus gold mines and deposits, including Kinross's Fort Knox mine, Newmont's Coffee deposit and Victoria Gold's Eagle mine. The company's first-mover land position and extensive database provide a unique opportunity for investors to be part of multiple discoveries and the creation of a new gold district.
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