News Private placementthe good part: there is an interest for Tomagold
The bad part: A little bit low. But I think they had to do it before the end of december. So not easy to get a better price. So I expect these guys in return will buy heavily in the free market
MONTREAL, Dec. 24, 2020 (GLOBE NEWSWIRE) -- TOMAGOLD CORPORATION (TSXV: LOT) (“TomaGold” or the “Corporation”) is pleased to announce that it has closed a non-brokered private placement for aggregate gross proceeds of $869,500 (the “Offering”), consisting of common and flow-through units. The Offering consists of the issuance of:
(i) 2,406,250 common units (the “Common Units”) at a price of $0.08 per Common Unit for an amount of $192,500. Each Common Unit is comprised of one common share of the Corporation and one warrant. Each warrant entitles its holder to acquire one common share of the Corporation at a price of $0.12 for a period of 24 months following the closing of the private placement.
(ii) 6,770,000 flow-through units (the “FT Units”) at a price of $0.10 per FT Unit for an amount of $677,000. Each FT Unit consists of one flow-through common share of the Corporation and one half of a warrant. Each whole warrant entitles its holder to acquire one common share of the Corporation at a price of $0.15 for a period of 24 months following the closing of the private placement.
In connection with the Offering, the Corporation paid finders, which are all arms’ length with the Corporation, finders’ fees for a total of $37,100 in cash and issued 374,000 warrants, with each warrant entitling the holder to acquire one common share of the Corporation at a price of $0.15 over a period of 24 months from the closing.
The proceeds of the Offering will be used primarily to incur exploration expenses on the Corporation's mining properties in Quebec and for working capital purposes. All securities issued pursuant to this Offering are subject to a four month and one day hold period, ending on April 24, 2021, in accordance with applicable Canadian securities legislation. The Offering has received the conditional approval of the TSX Venture Exchange and remains subject to final approval by the TSX Venture Exchange.
Officers and directors of the Corporation subscribed for a total of 1,820,000 Common and FT Units, which constitute “related party transactions” within the meaning of Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions. The subscriptions are exempt from the formal valuation and minority approval requirements set out in sections 5.5(a) and 5.7(1)(a) of MI 61-101, respectively, as neither the fair market value of the shares issued to insiders nor the fair market value of the consideration paid exceeds 25% of the Corporation's market capitalization. A material change report in respect of this related party transaction will be filed by the Corporation but cannot be filed earlier than 21 days prior to the closing of the Offering because the terms and conditions of the participation of each of the unrelated persons and the related party in the Offering were not determined.
This press release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or any state securities laws and may not be offered or sold within the United States or to or for the account or benefit of a U.S. person (as defined in Regulation S under the U.S. Securities Act) unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
About TomaGold
TomaGold Corporation (TSXV: LOT) is a Canadian mineral exploration corporation engaged in the acquisition, assessment, exploration and development of gold mineral properties. TomaGold has interests in five gold properties near the Chibougamau mining camp in northern Quebec: Obalski, Monster Lake East, Monster Lake West, Hazeur and Lac Doda. It also participates in a joint venture with Evolution Mining Ltd and New Gold Inc., through which it holds a 24.5% interest in the Baird property, near the Red Lake mining camp in Ontario.
Contact:
David Grondin
President and Chief Executive Officer
(514) 583-3490
www.tomagoldcorp.com