New Carolin reprices second tranche of placementNew Carolin reprices second tranche of placement 2016-12-21 13:03 ET - News Release
Mr. Robert Thast reports
NEW CAROLIN GOLD RE-PRICES SECOND TRANCHE OF FLOW THROUGH PLACEMENT AND RE-PRICES NON-FLOW THROUGH WARRANTS
New Carolin Gold Corp., due to current market conditions and to recent global gold pricing, has been forced to reprice the up-to $570,000 second tranche of its $1.1-million flow-through financing originally announced on Nov. 4, 2016. The company will now issue a second tranche of up to 8,769,231 flow-through common shares in the capital stock of the company at a price of 6.5 cents per share. The company expects to close on a major portion of the second tranche of FT shares within the next few days. Each FT share will be designated as a flow-through share pursuant to the Income Tax Act (Canada). The proceeds from the FT offering will be used to finance qualified Canadian exploration expenditures (CEE) work on the company's Ladner gold project in southwestern British Columbia.
The company has also repriced the warrants associated with the working capital financing of up to $500,000 by way of the private placement of up to 7,142,857 non-flow-through units in the capital stock of the company at a price of seven cents per unit originally announced on Nov. 15, 2016. Each NFT unit will now consist of one NFT common share of the company and one warrant to purchase one additional NFT common share for a period of two years at a price of seven cents per share if exercised within the first year after closing and at a price of nine cents per share if exercised within the second year from the date of closing. Proceeds from the NFT offering will be used for working capital and general corporate purposes.
Finders' fees may be paid on portions of both the FT and NFT offerings in accordance with TSX Venture Exchange regulations. All securities issued in connection with the FT and NFT offerings are subject to a statutory hold period of four months and one day from the date of issuance in accordance with applicable securities legislation.
We seek Safe Harbor.