EnGold (EGM) reports on its share consolidation, non-brokered private placement and the drill program at its Lac La Hache Property.
EnGold's share consolidation (on a 10 for 1 basis) will become effective on Friday, August 6, 2021.
EnGold's common shares are expected to commence trading on a post-consolidation basis under the new CUSIP/ISIN numbers 29330R308/CA29330R3080. Following completion of the consolidation, the company will have approximately 25,661,544 common shares issued and outstanding.
The share consolidation was approved by the shareholders and has been approved by the TSX Venture Exchange.
A letter of transmittal will be mailed to all registered shareholders with instructions on how to exchange their existing share certificates for new share certificates. A copy of the letter of transmittal will also be available on the Company's profile on SEDAR.
Shareholders who hold their common shares through a securities broker, dealer, bank or other financial institution are not required to take any action with respect to the consolidation and should contact that intermediary for their post-consolidation positions.
No fractional common shares will be issued. Instead, each fractional share that is less than 1/2 of a share will be cancelled and each fractional share that is at least 1/2 of a share will be rounded up to the next whole number.
EnGold has arranged an $8,000,000 non-brokered private placement of flow-through units on a post-consolidation basis. The financing consists of 16,000,000 units at a price of $0.50 per unit. Each unit consists of one flow-through share and one-half of one warrant whereby each whole warrant will entitle the holder to purchase one common share at a price of $0.75 for a period of two years from the date of issuance.
The company expects to close the offering in two equal tranches of $4,000,000, with the first tranche closing on or before August 13, 2021, and the second tranche closing shortly thereafter.
EnGold has paused its drill program at its Lac La Hache Property due to the high risk of wildfires in the Cariboo region. At this time, the wildfire risk remains high and management does not anticipate restarting its program prior to the first week of September 2021.
EnGold is a Vancouver-based copper, gold, silver, magnetite exploration company focused solely on its Lac La Hache property in the Cariboo region of BC.
EnGold Mines Ltd. (EGM) is down 14.29 per cent, trading at C$0.03 per share at 2:35 pm ET.