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Cassiar Gold Closes First Tranche of Private Placement and Announces Upsize to $2 Million
Calgary, Alberta--(Newsfile Corp. - July 28, 2022) - Cassiar Gold Corp. (TSXV: GLDC) (OTCQX: ...
About this update from Cassiar Gold Corp
[{"type":"text","content":"Cassiar Gold Closes First Tranche of Private Placement and Announces Upsize to $2 MillionCalgary, Alberta--(Newsfile Corp. - July 28, 2022) - Cassiar Gold Corp. (TSXV: GLDC) (OTCQX: CGLCF) (\"Cassiar Gold\" or the \"Company\") is pleased to announce that, further to its Press Release dated July 21, 2022, and subject to receiving regulatory approvals, the Company has closed the first tranche of its insider-led, non-brokered private placement (the \"Offering\") by issuing 1,163,570 flow-through units (\"FT Units\") at a price of C$0.70 per FT Unit for gross proceeds of $814,500. Due to high demand, the Company intends to upsize the Offering from the original stated amount of $1 million to $2 million with all proceeds to be used to fund ongoing exploration and drill programs at its flagship Cassiar Gold Project in northern British Columbia, Canada.Each FT Unit will consist of one common share of the Company issued on a \"CEE flow-through\" basis pursuant to the Income Tax Act (Canada) and one-half of one common share purchase warrant. Each whole warrant will be exercisable by the holder to acquire one common share of the Company at a price of C$0.90 cents for a period of 24 months following the closing date of the Offering. The securities issued pursuant to the Offering will be subject to a four-month hold period under applicable securities laws. Closing of the second tranche of the Offering is expected to occur on or before August 5, 2022, and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSX Venture Exchange (\"TSXV\"). Certain insiders of the Company purchased a total of 557,856 FT Units under the Offering. The issuance of securities to such persons constitutes a \"related-party transaction\" as defined in TSXV Policy 1.1 and Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions (\"MI 61-101\"). The Company intends to rely on exemptions from the formal valuation and minority shareholder requirements provided under sections 5.5(a) and 5.7(1)(a) of MI 61-101 on the basis that neither the fair market value of the gross securities to be issued under the Offering nor the consideration to be paid by insiders of the Company will exceed 25% of the Company's market capitalization.The securities being offered h...