Also today-New Gold buys 10% of Angus-in our backyard
Angus Gold closes $3.29-million financing
2021-03-18 12:57 ET - News Release
Also News Release (C-NGD) New Gold Inc
Mr. Andrey Shamis of Angus Gold reports
ANGUS GOLD COMPLETES $3.3 MILLION STRATEGIC INVESTMENT BY NEW GOLD INC. BY WAY OF A PRIVATE PLACEMENT
Angus Gold Inc. has closed its previously announced non-brokered private placement for total gross proceeds of $3,297,000 to the company. The Financing was comprised of 700,000 hard dollar shares ("Hard Shares") at a price of $0.71 per Hard Share and of 2,800,000 flow through shares of the Company ("FT Shares") at a price of $1.00 per FT Share. Each FT Share consists of one common share in the capital of the Company (a "Common Share") issued on a flow-through basis within the meaning of the Income Tax Act (Canada) ("Tax Act"). The gross proceeds from the Financing will be used to fund exploration on the Company's projects in Ontario and for working capital purposes. The gross proceeds received by the Company from the sale of FT Shares will be used to incur Canadian Exploration Expenses that are "'flow-through" mining expenditures as such terms are defined in the Tax Act. The securities issued under the Financing have a hold period expiring on July 19, 2021.
New Gold Inc. Investment
New Gold Inc. ("New Gold") (TSX: NGD) purchased 3,500,000 Common Shares in connection with the Financing, which represents approximately 9.9% of Angus' issued and outstanding Common Shares. In connection with this investment, Angus granted New Gold the right to maintain its pro rata ownership percentage during future financings or in the case of any dilutive issuance to allow New Gold to maintain or increase its equity ownership interest in Angus to a maximum of 9.9% of the issued and outstanding Common Shares. Such rights shall extinguish if New Gold ceases to beneficially own at least 7.5% of the issued and outstanding Common Shares of Angus (on an undiluted basis).
About Angus Gold:
Angus is a Canadian gold exploration company with a 234-square-kilometres land package located in north-central Ontario approximately 50 kilometres west of the town of Wawa and lies between Wesdome Gold Mines' two producing mines.
We seek Safe Harbor.
© 2021 Canjex Publishing Ltd. All rights reserved.