Strategic InvestmentAllegiant Gold Announces a C$4.0 Million Strategic Investment by Kinross Gold
Corporation for Exploration at the Eastside Property
RENO, Nev., March 14, 2022 (GLOBE NEWSWIRE) -- Allegiant Gold Ltd.
(“Allegiant” or the “Company”) (AUAU: TSX-V) (AUXXF: OTCQX) is pleased to
announce a C$4,014,404 financing and strategic investment by Kinross Gold
Corporation (“Kinross”) (NYSE: KGC, TSX: K) which will accelerate the
exploration and development activities at the Eastside property in Nevada. On
closing Kinross will own 9.9% of the then issued shares of Allegiant.
Kinross operates the Round Mountain gold mine, located across the valley from
Allegiant’s Eastside project. Round Mountain is one of the largest open pit
gold mines in the United States.
Peter Gianulis, CEO of Allegiant Gold, commented: “We are very excited to have
Kinross as a strategic partner, given their experience and prominent presence
in Nevada, and the relative close proximity of their flagship Round Mountain
Mine, which shares many similar geological characteristics to Eastside.
Allegiant and Kinross have developed an excellent rapport over the years, and
we look forward to a productive and collaborative working relationship with
them.”
Kinross has entered into a $4,014,414 subscription agreement with Allegiant to
acquire 10,036,034 units (the “Units”) in a non-brokered private placement at
C$0.40 per Unit with each Unit consisting of one common share of the Company
(a “Common Share”) and one-half of one Common Share purchase warrant (each
whole warrant, a “Warrant”). Each Warrant shall entitle the holder to purchase
one Common Share at a price of $0.70 exercisable over two years following the
closing date, subject to customary adjustments.
The strategic investment by Kinross calls for the formation of a four-person
Technical Advisory Committee comprised of two members from each company. The
Technical Advisory Committee will provide advice and guidance on the upcoming
core-drilling program at the high-grade zone (“HGZ”) within the Original Pit
Zone at Eastside. Allegiant has agreed to allocate no less than 80% of the
investment by Kinross to a work program specifically designed for the HGZ.
In connection with the transaction, Allegiant and Kinross will enter into an
investor rights agreement providing each party with customary rights,
including the grant of standard anti-dilution and equity participation rights
to Kinross. The transaction is subject to certain conditions including, but
not limited to, acceptance by the TSX Venture Exchange and is expected to
close on or about March 18, 2022.
Allegiant has engaged Cormark Securities Inc. as its financial advisor and
Stikeman Elliott LLP as its legal advisor in connection with the strategic
investment by Kinross.