Business
Avidian Gold Closes $2M Non-Brokered Private Placement with Strategic Participation from Eric Sprott
TORONTO, July 14, 2020 (GLOBE NEWSWIRE) -- Avidian Gold Corp. (“Avidian” or the “Company”) (TSX-V: AVG) is pleased to announce that it has closed the previously
About this update from Avidian Gold Corp.
[{"type":"text","content":" TORONTO, July 14, 2020 (GLOBE NEWSWIRE) -- Avidian Gold Corp. (“Avidian” or the “Company”) (TSX-V: AVG) is pleased to announce that it has closed the previously announced (see July 6, 2020 and July 10, 2020 news releases) non-brokered, private placement for gross proceeds of $2,000,000 (the “Offering”). The private placement consisted of “Units” at $0.10 per Unit. Each Unit consists of one common share of the Company (a “Common Share”) and one Common Share purchase warrant (a “Warrant”) exercisable into a Common Share at a price of $0.14 for twenty-four (24) months following the issuance of Warrants. The terms of the Warrants restrict the exercise of the Warrants if such exercise would cause the warrant holder to hold 20% or more of the Common Shares without having previously obtained required approvals in accordance with the policies of the TSX Venture Exchange. The Company advises that Mr. Eric Sprott has acquired the 20,000,000 Units pursuant to the Offering and that the Company has determined that it is in the best interest of its shareholders to decrease the size of the Offering from the previously announced $2,500,000 to $2,000,000. David Anderson, Chairman and CEO of Avidian states: “We are very pleased to welcome Eric on board as a major shareholder. Eric is a recognized gold expert and his investment in Avidian is in our opinion, recognition of the potential of the advanced stage, exploration projects we hold in Alaska and Nevada. His investment is significant and timely as we launch our summer programs. We look forward to announcing detailed exploration plans in the coming days.” The net proceeds from the Offering shall be primarily used for the development of Avidian’s mineral properties and for general and administrative expenses. The securities issued pursuant to the Offering will be subject to four months and a day statutory hold period in accordance with applicable Canadian securities laws. Subsequent to the closing of the Offering, Mr. Sprott, who previously held no securities of the Company and who acquired 20,000,000 Units pursuant to the Offering for a total consideration of $2,000,000 through 2176423 Ontario Ltd., a corporation that is beneficially owned by him, beneficially owns or controls 20,000,000 Common Shares and 20,000,000 Warrants representing approximately 17.48% of the issued and outstanding Commo...