GGX Gold closes $1.19-million in placement tranches
GGX Gold closes $1.19-million in placement tranches
2019-08-09 21:19 ET - News Release
Mr. Barry Brown reports
GGX GOLD CLOSES $1,194,750 IN TRANCHES OF PRIVATE PLACEMENT
GGX Gold Corp. has closed the first and the second tranches of the private placement announced on June 18, 2019, and July 24, 2019, for gross proceeds of $1,194,750. Each flow-through unit will comprise one common share (which is a flow-through share for Canadian income tax purposes) and one-half share purchase warrant. Each whole flow-through warrant will entitle the holder to purchase one additional common share which is not a flow-through share at the price of 35 cents for 18 months after closing. The term of the warrants may be accelerated in the event that the issuer's shares trade at or above a price of 40 cents per share for a period of 10 consecutive days. In such case of accelerated warrants, the issuer may give notice, in writing or by way of news release, to the subscribers that the warrants will expire 20 days from the date of providing such notice. The flow-through financing closed in two tranches and the hold expiry date for the first tranche consisting of 500,000 units is November 30, 2019, and the second-tranche hold expiry date totalling 2,175,000 million units is December 9, 2019. Each non-flow-through unit will comprise one common share and one share purchase warrant. Each non-flow-through warrant will entitle the holder to purchase one additional common share at the price of 30 cents for a period of 18 months after closing. The term of the warrants may be accelerated in the event that the issuer's shares trade at or above a price of 40 cents per share for a period of 10 consecutive days. In such case of accelerated warrants, the issuer may give notice, in writing or by way of news release, to the subscribers that the warrants will expire 20 days from the date of providing such notice. The non flow-through financing closed in two tranches and the hold expiry date for the first tranche consisting of 1,065,000 units is November 12, 2019, and the second-tranche hold expiry date totalling 1,565,000 million units is December 9, 2019.
Proceeds from the private placement will be used for the continued exploration work on the Gold Drop property, potential project acquisitions, property option payments as well as general working capital.
The Company paid a cash commission of $2,400.00 to Canaccord Genuity Corp. and $10,000.00 to Leede Jones Gable Inc. and $13,500.00 to EMD Financial Inc.
The Company also issued 12,000 broker warrants to Canaccord Genuity Corp. and 40,000 broker warrants to Leede Jones Gable Inc. and 54,000 broker warrants to EMD Financial Inc. The broker warrants have the same terms as the private placement warrants.
We seek Safe Harbor.
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