ET | Source: Core Gold Inc.
VANCOUVER, British Columbia, Dec. 28, 2017 (GLOBE NEWSWIRE) -- Core Gold Inc. ("Core Gold" or the "Company") (TSXV:CGLD) (OTCQX:CGLDF) is pleased to announce that it has closed the second and final tranche (the "Second Tranche") of its non-brokered private placement of units first announced on December 1, 2017 (the "Private Placement").
For the Second Tranche, the Company issued 4,133,333 units (each a "Unit") at a price of $0.30 per Unit for aggregate gross proceeds of CAD$1,240,000. As the financing was oversubscribed, the Company issued, together with the first tranche that closed on December 18, 2017, a total of 7,296,333 units pursuant to the Private Placement for aggregate gross proceeds of CAD$2,188,900.
Each Unit is comprised of one common share of the Company (each a "Common Share") and one half of one Common Share purchase warrant (each whole Common Share purchase warrant, a "Warrant"). Each Warrant entitles the holder to purchase one Common Share at a price of $0.45 for a period of two (2) years following the date of issuance, subject to acceleration in the event that the closing price of the Common Shares is $0.60 or higher over a period of ten (10) consecutive trading days. The securities issued pursuant to the Second Tranche are subject to a four month hold period that expires on April 29, 2018.
The Company intends to use the net proceeds from the Private Placement for working capital and general corporate purposes.
In connection with the Second Tranche, the Company paid cash finders’ fees totaling CAD$14,000 to one individual.
The Private Placement has been conditionally appr