This news release is intended for distribution in Canada only and is not intended for distribution to United States newswire services or dissemination in the United States
TORONTO, ON / ACCESSWIRE / November 16, 2020 / Pelangio Exploration Inc. (TSXV:PX)(OTC PINK:PGXPF) ("Pelangio" or the "Company") announces a non-brokered private placement for aggregate gross proceeds of up to $1,800,000 (the "Offering'). The Offering will consist of the sale of hard dollar units (the "HD Units") of the Company at a price of $0.13 per HD Unit and common shares of the Company issued on a flow-through basis (the "FT Shares") at a price of $0.17 per FT Share.
Each HD Unit consists of one common share of the Company (a "Common Share") and one Common Share purchase warrant ("Warrant"). Each Warrant entitles the holder to purchase one Common Share at a price of $0.18 for a period of two years from the initial closing date of the Offering, provided that if after four months and one day following the closing of the Offering, if the VWAP of the Common Shares on the TSX Venture Exchange ("TSX-V") is at or above $0.30 for a period of 15 consecutive trading days, then the Company may accelerate the expiry date of the Warrants by disseminating a press release, and in such case the Warrants will expire on the 20th day after the date on which such press release is disseminated.
The FT Shares will qualify as "flow-through shares" (within the meaning of the Income Tax Act (Canada)). The gross proceeds from the sale of the FT Shares will be used to incur qualifying Canadian Exploration Expenses. Qualifying expenses are to be incurred by no later than December 31, 2021 for renunciation to investors of FT Shares in the Offering effective December 31, 2020. The balance of the proceeds of the Offering will be used for general corporate and working capital purposes, and to advance the Company's gold exploration projects.
The shares issued under the Offering will be subject to a four-month and one day hold period and will not be sold in the United States. The Offering is subject to customary closing conditions including, but not limited to, receipt of applicable regulatory approvals, including approval of the TSX-V.The closing of the Offering may occur in one or more tranches, with the initial closing date of the Offering expected to occur on or around December 8, 2020 and is not subject to receipt of a minimum amount of gross proceeds. The Company may pay to certain introducing parties in respect of the Offering finder's fees of up to 7% cash and non-transferable 7% warrants, subject to compliance with applicable securities legislation and TSX-V policies.
The securities issued pursuant to the Offering will be subject to a four-month and one day hold period in accordance with applicable Canadian securities laws and TSX-V policies.
Neither TSX-V nor its Regulation Services Provider (as that term is defined in the policies of the TSX-V) accepts responsibility for the adequacy or accuracy of this release.
About Pelangio
Pelangio acquires and explores world-class gold belt land packages Ghana, West Africa and Canada. In Ghana, the Company is exploring its two 100% owned camp-sized properties: the 100 km2 Manfo Property, the site of seven near-surface gold discoveries, and the 284 km2 Obuasi Property, located 4 km on strike and adjacent to AngloGold Ashanti's prolific high-grade Obuasi Mine, as well as the newly optioned Dankran property located adjacent to its Obuasi property. In Canada, the Company is currently focused in Ontario on its Grenfell property, located 10 km from Kirkland Lake, at its Dome West property, situated some 800 meters from the Dome Mine in Timmins and is advancing its Hailstone property in Saskatchewan. See www.pelangio.com for further detail on all Pelangio's properties.
For additional information, please visit our website at www.pelangio.com, or contact:
Ingrid Hibbard, President and CEO
Tel: 905-336-3828 / Toll-free: 1-877-746-1632 / Email: info@pelangio.com
Forward Looking Statements