Business
Avidian Announces Closing of First Tranche of Non-Brokered Private Placement
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About this update from Avidian Gold Corp.
[{"type":"text","content":"Avidian Announces Closing of First Tranche of Non-Brokered Private PlacementNOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR RELEASE, PUBLICATION, DISTRIBUTION OR DISSEMINATION DIRECTLY, OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATESTORONTO, ON / ACCESSWIRE / June 14, 2021 / Avidian Gold Corp. (\"Avidian\" or the \"Company\") (TSXV:AVG)(OTCQB:AVGDF) is pleased to announce the closing of the first tranche of the Company's private placement first announced on April 26, 2021 (the \"Offering\"). Within the first tranche, the Company raised aggregate gross proceeds of $5,218,411 through the sale of 26,897,774 hard dollar units (the \"HD Units\") at a price of $0.15 per HD Unit and 6,576,364 common shares of the Company issued on a \"flow-through\" basis pursuant to the Income Tax Act (Canada) (the \"FT Shares\") at a price of $0.18 per FT Share. The Company expects to close the second tranche of the Offering on or about June 17, 2021. The Company reserves the right to up-size the Offering by 25%.Each HD Unit issued pursuant to the first tranche consists of one common share of the Company (a \"Common Share\") and a half warrant (a \"Warrant\"). Each whole Warrant will entitle the holder to acquire a common share of the Company at $0.20 for thirty-six (36) months following closing of the first tranche.In connection with the first tranche, the Company paid to eligible finders an aggregate of $158,857.44 in cash and 990,354 broker warrants (the \"Broker Warrants\"). Each Broker Warrant is exercisable to acquire one Common Share at a price of $0.20 for a period of thirty-six (36) months following closing of the first tranche.Certain insiders of the Company have subscribed for an aggregate of 2,719,635 HD Units for aggregate gross proceeds of $407,945.25. The participation by these insiders within the Offering will support advancement of the Company's mining projects and general working capital purposes. The issuance of the HD Units to the insiders are considered related party transactions within the meaning of TSXV Policy 5.9 and Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions (\"MI 61-101\"). The Company has relied on the exemptions from the formal valuation and minority approval requirements under sections 5.5(a) and 5.7(a) of MI 61-101, on the basis that the particip...