Business
Cassiar Gold Closes Equity Offering for Gross Proceeds of C$9.9 Million
Calgary, Alberta--(Newsfile Corp. - May 4, 2023) - Cassiar Gold Corp. (TSXV: GLDC) (OTCQX: CGLCF...
About this update from Cassiar Gold Corp
[{"type":"text","content":"Cassiar Gold Closes Equity Offering for Gross Proceeds of C$9.9 MillionCalgary, Alberta--(Newsfile Corp. - May 4, 2023) - Cassiar Gold Corp. (TSXV: GLDC) (OTCQX: CGLCF) (\"Cassiar Gold\" or the \"Company\") is pleased to announce that it has completed its previously announced bought deal public offering (the \"Underwritten Offering\"). Pursuant to the Underwritten Offering, the Company issued a total of 12,760,000 charity flow-through units of the Company (each, a \"Charity FT Unit\") as part of a charity arrangement, at a price of C$0.75 per Charity FT Unit (the \"Offering Price\"), on a \"bought deal\" basis for gross proceeds of C$9,570,000. The Underwritten Offering was completed through a syndicate of underwriters co-led by Cormark Securities Inc., Canaccord Genuity Corp. and Red Cloud Securities Inc., and included PI Financial Corp. (collectively, the \"Underwriters\").Concurrent with the Offering, the Company completed the first tranche (the \"First Tranche\") of a non-brokered private placement (the \"Non-Brokered Offering\", and together with the Underwritten Offering, the \"Offering\"). Under the First Tranche, the Company issued of 466,667 traditional flow-through units of the Company (each, a \"Regular FT Unit\", and together with the Charity FT Units, the \"Units\") at a price of C$0.75 per Regular FT Unit for aggregate gross proceeds of C$350,000.Each Unit consists of one common share (each, a \"FT Share\") and one half of one common share purchase warrant (each whole warrant, a \"Warrant\"). Both the FT Share and the one half of one Warrant comprising each Unit qualify as a \"flow-through share\" within the ‎meaning of the Income Tax Act (Canada) (the \"Income Tax Act\").‎ 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$0.70 at any time on or before that date which is 24 months after the closing date of the Offering.As compensation for their services in the Underwritten Offering, the Underwriters received a cash commission of C$573,525. In addition, the Underwriters received 764,700 non-transferable warrants (the \"Broker Warrants\") exercisable at any time prior to the date that is 24 months from the closing date to acquire 764,700 common shares of the Company (the \"Broker Warrant Shares\"), at an e...