Shield Gold (TSX-V:SHG, StockForum), a Toronto-based mineral exploration company engaged in the acquisition and exploration of Canadian mineral properties, announced today that the company was making 4.0 million units available for a non-brokered private placement offering.
The offering is to be made in two parts, where the first will include 2.0 million units at $0.10 per unit with each unit comprised of one common share and one common share-purchase warrant. The warrants have a twenty-four (24) month expiry after the offer closes and can be exercised at $0.18 per warrant.
The second part will consist of 2.0 million flow-through units at $0.12 per flow-through unit with each flow-through unit comprised of one flow-through eligible Shield share and one common purchase warrant. These warrants also have a twenty-four (24) month expiry after the offer closes and can be exercised at $0.20 per warrant.
There will be an 8% finder's fee laid out as a cash commission on the gross aggregate of the total offering proceeds. Any and all securities issued at this time will be under a hold period of four months and plus a day and the offering itself is subject to regulatory approval.
According to the news release, “Net Proceeds from the Offering will be used to fund exploration of the Company's graphite prospects in the Buckingham and Lochaber Townships of southwestern Québec and to develop additional graphite exploration opportunities for the Company.”
Shield Gold made headlines recently when the company initiated metallurgical testing and mineral characterization at the aforementioned Quebec-based prospects.
Shares rose 14.29% on the news to $0.12 per share.
Currently there are 38,273,486 outstanding shares with a market cap of $4.59 million.