$0.50 financing…this explains recent price pull back
up to CAD$2.0 Million
2021-12-22 07:30 ET - News Release
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
VANCOUVER, BC / ACCESSWIRE / December 22, 2021 / Canagold Resources Ltd. (TSX:CCM)(OTCQB:CRCUF)(Frankfurt:CANA) ("Canagold" or the "Company") is pleased to announce a non brokered private placement financing for up to four million flow through shares within the meaning of the Income Tax Act (Canada) (each, a "FT Share") at a price of CAD$0.50 per FT share for gross proceeds of up to CAD$2 million.
The Offering is expected to close in two tranches, the first of which is scheduled to close on or about December 30, 2021 and the second is scheduled to close on or around January 18, 2022 in each case subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the Toronto Stock Exchange. The FT Shares will have a hold period of four months and one day from the respective closing date.
Proceeds from the sale of FT Shares will be used to incur "Canadian exploration expenses" as defined in subsection 66.1(6) of the Income Tax Act and "flow through mining expenditures" as defined in subsection 127(9) of the Income Tax Act ("Qualifying Expenditures"). Proceeds from the December, 2021 tranche will be renounced to the subscribers with an effective date not later than December 31, 2021 and proceeds from the January 2022 tranche will be renounced to subscribers with an effective date not later than December 31, 2022, in each case in the aggregate amount of not less than the total amount of gross proceeds raised from such issue of FT Shares. Proceeds from the Offering will be used for to fund eligible exploration expenditures of the Company's New Polaris gold project in north-western British Columbia.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy the Offered Securities, nor shall there be any sale of the Offered Securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction. The Offered Securities being offered will not be, and have not been, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, a U.S. person.
About Canagold - Canagold Resources Ltd. is a growth-oriented gold ex