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ALLEGIANT Private Placement and Strategic Investment from Goldcorp to Fund High-Impact Discovery Drilling Program
VANCOUVER, British Columbia, July 09, 2018 (GLOBE NEWSWIRE) -- Allegiant Gold Ltd. (“ALLEGIANT”) (TSX-V:AUAU) (OTCQX:AUXXF) is pleased to announce that it has a
About this update from A2 Gold Corp.
[{"type":"text","content":" VANCOUVER, British Columbia, July 09, 2018 (GLOBE NEWSWIRE) -- Allegiant Gold Ltd. (“ALLEGIANT”) (TSX-V:AUAU) (OTCQX:AUXXF) is pleased to announce that it has arranged a non-brokered private placement to raise CAN$4,415,605. The placement will consist of 12,616,014 shares of ALLEGIANT at a price of CAN$0.35 per common share (the “Offering”). In connection with the Offering, Goldcorp Inc. (TSX:G) is undertaking a strategic investment in ALLEGIANT. Goldcorp will purchase 5,923,819 ALLEGIANT common shares at CAN$0.35/share for gross proceeds to ALLEGIANT of CAD$2,073,337. Post-closing Goldcorp will own 9.99% of the issued and outstanding common shares of ALLEGIANT on a non-diluted basis. Proceeds of the Offering will be used to carry-out high-impact “discovery” exploration drill programs on six of ALLEGIANT’S high-priority exploration projects, located principally in the mining-friendly jurisdiction of Nevada. Over a 10-month period starting in August 2018, the following six gold exploration projects will be drilled: North Brown Red Hills Monitor Hills Hughes Canyon Adularia Hill Silver Dome Goldcorp and ALLEGIANT have entered into an investor rights agreement, whereby as long as Goldcorp maintains an equity interest in ALLEGIANT of 5% or greater, it will have: i) the right to participate in future equity financings to maintain up to a 9.99% interest in ALLEGIANT; ii) the right to receive regular updates of technical information on all ALLEGIANT’s projects; iii) the right of first refusal to match third party offers in connection with proposed transactions on ALLEGIANT’s North Brown, Red Hills, Monitor Hills and Hughes Canyon gold projects; iv) the right of first refusal on all of ALLEGIANT’s projects except Eastside, to match third party offers in connection with non-equity financings such as royalties and streams; and v) the right to appoint 50% of a technical committee with ALLEGIANT with respect to the North Brown, Red Hills, Monitor Hills and Hughes Canyon gold projects. Closing of the Offering is anticipated to occur in July, subject to customary closing conditions, including but not limited to, title opinions and the receipt of applicable regulatory approvals, including approval of the TSX Venture Exchange. All shares issued in connection with the Offering will be subject to ...