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Ashley Gold Closes $300,000 Private Placement with Institutional Investor
Calgary, Alberta - TheNewswire - October 4, 2023 - Ashley Gold Corp. (the "Company") (CSE:ASHL), is pleased to announce it has successfully closed a $300,000.00
About this update from Ashley Gold Corp.
[{"type":"text","content":"Calgary, Alberta - TheNewswire - October 4, 2023 - Ashley Gold Corp. (the \"Company\") (CSE:ASHL), is pleased to announce it has successfully closed a $300,000.00 (CAD) private placement with Sorbie Bornholm LP, an institutional investor (“Sorbie”) based out of the UK. The private placement consisted of 4,166,667 units of the Company (the \"Units\") at a price of $0.0720 per Unit, for aggregate gross proceeds of $300,000 (the \"Offering\"). The proceeds from the Offering were deposited with a third-party escrow agent and shall be delivered to the Company in equal monthly tranches of $25,000 over the next 12 months pursuant to the terms and conditions of a Sharing Agreement, Escrow Agreement, Subscription Agreement and various support agreements dated October 4, 2023 between the Company and Sorbie, (collectively, the “Transaction Documents”). The structure of the Offering will provide the Company with flexibility in continuing to advance the Company's Projects in Ontario while maintaining a constant source of funds covering a portion of the Company's short to medium term cash flow requirements. Pursuant to the Transaction Documents, the Company paid Sorbie a due diligence deposit of $20,000 and a corporate finance fee of $24,000, which was satisfied via the issuance of 611,111 Units of the Company, having the identical terms of the Units issued under the Offering. Each Unit consisted of one (1) common share of the Company (each a “Common Share”), and each Common Share comprising part of a Unit being a “Unit Share”) and one (1) share purchase warrant (each whole share purchase warrant, a “Unit Warrant”), with each Unit Warrant entitling the holder to purchase one additional Common Share (a “Unit Warrant Share”) at a price of $0.12 per Unit Warrant Share, for a period of thirty-six months from the date of issue (the “Expiry Date”). Darcy Christian, President of Ashley, commented: \"We are very excited to secure the capital from an institutional investor and the funds will accelerate Howie ground exploration program that is currently underway. The junior exploration market is currently experiencing headwinds in securing capital, but we managed to secure a long-term partner who sees value in our management team and our exploration program.\" The Company relied on the listed issuer financing exemption under Part 5A of National I...