Business
Chesapeake Gold Arranges $20 Million Private Placement Financing
Vancouver, British Columbia--(Newsfile Corp. - August 4, 2020) - Chesapeake Gold Corp. (TSXV: ...
About this update from Chesapeake Gold Corp.
[{"type":"text","content":"Chesapeake Gold Arranges $20 Million Private Placement FinancingVancouver, British Columbia--(Newsfile Corp. - August 4, 2020) - Chesapeake Gold Corp. (TSXV: CKG) (OTCQX: CHPGF) (\"Chesapeake\" or the \"Company\"), is pleased to announce that it has arranged a non-brokered private placement of 4,000,000 common shares (\"Common Shares\") at a price of $5.00 per share for gross proceeds of $20,000,000 (the \"Private Placement\"). Of that amount, $15,000,000 is being placed with Eric Sprott's company, 2176423 Ontario Ltd., a large shareholder of Chesapeake holding 11.8% of the current issued and outstanding Common Shares. The Sun Valley Gold Master Fund, Ltd., an existing shareholder which holds 7.4% of the current issued and outstanding Common Shares, is subscribing for $5,000,000 of the Private Placement.After completion of the Private Placement, Eric Sprott will beneficially own and control 9,089,099 Common Shares, representing approximately 16.4% of the issued and outstanding Common Shares. The Sun Valley Gold Master Fund, Ltd. will own 4,790,138 Common Shares, representing approximately 8.6% of the issued and outstanding Common Shares.The proceeds of the financing will be used to undertake Metates metallurgical test work and ongoing regional exploration and for general working capital. There are no finder's fees or other commissions associated with the Private Placement.Randy Reifel, President, stated: \"Metates is world class with proven and probable reserves of over 18 million ounces of gold, 500 million ounces of silver and 4.0 billion pounds of zinc in a pro-mining Mexico jurisdiction. Eric Sprott and Sun Valley Gold Master Fund continue to be strong supporters and recognize as major shareholders this compelling opportunity in a record high gold and silver market. We believe the potential future development of Metates together with the satellite exploration project pipeline will create long term significant value for our shareholders.\"The Private Placement is subject to the receipt of all necessary approvals, including the approval of the TSX Venture Exchange. The Common Shares to be issued under the Private Placement will be subject to a hold period under applicable Canadian securities laws until four months after the closing of the Private Placement.The securities described in this news release have not been, and will n...