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Cassiar Gold Announces Amendment to Previously Announced Bought Deal Public Offering for Revised Gross Proceeds of C$5.0 Million
Calgary, Alberta--(Newsfile Corp. - May 24, 2022) - Cassiar Gold Corp. (TSXV: GLDC) (OTCQX: C...
About this update from Cassiar Gold Corp
[{"type":"text","content":"Cassiar Gold Announces Amendment to Previously Announced Bought Deal Public Offering for Revised Gross Proceeds of C$5.0 MillionCalgary, Alberta--(Newsfile Corp. - May 24, 2022) - Cassiar Gold Corp. (TSXV: GLDC) (OTCQX: CGLCF) (\"Cassiar Gold\" or the \"Company\") announces that it has entered into an amending agreement to the underwriting agreement dated March 8, 2022 to amend the size and pricing of its previously announced bought deal public offering (the \"Offering\"). Under the amended terms of the underwriting agreement, the Underwriters (as defined below) have agreed to purchase 5,000,000 flow-through units of the Company (each, a \"FT Unit\") to be resold to charitable purchasers at a price of C$1.00 per FT Unit (the \"Offering Price\") on a \"bought deal\" basis by way of a short form prospectus for gross proceeds of C$5,000,000. Red Cloud Securities Inc. and Raymond James Ltd. are acting as co-lead underwriters and joint bookrunners for the Offering on behalf of a syndicate of underwriters (collectively, the \"Underwriters\"). Each FT Unit will consist of one common share of the Company to be issued as a \"flow-through share\" within the meaning of the Income Tax Act (Canada) (each, a \"FT Share\") and one half of one common share purchase warrant (each whole warrant, a \"Warrant\"). Each whole Warrant shall entitle the holder to purchase one non-flow-through common share of the Company (each, a \"Warrant Share\") at a price of C$1.05 at any time on or before that date which is 24 months after the closing date of the Offering.The Company has granted to the Underwriters an option, exercisable for a period of 30 days after and including the closing date of the Offering, to purchase up to an additional 750,000 FT Units for resale to charitable purchasers at the Offering Price to raise additional gross proceeds of up to C$750,000 to cover over-allotments, if any, and for market stabilization purposes. Proceeds from the sale of FT Shares will be used to incur \"Canadian exploration expenses\" as defined in subsection 66.1(6) of the Income Tax Act and \"flow through mining expenditures\" as defined in subsection 127(9) of the Income Tax Act. Such proceeds will be renounced to the subscribers with an effective date not later than December 31, 2022, in the aggregate amount of not less than the total amount of gross proceeds ra...