Business
Contact Gold Closes C$14.77 Million Public Offering and Retires Preferred Stock
Vancouver, British Columbia--(Newsfile Corp. - September 29, 2020) - Contact Gold Corp. (TSXV...
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[{"type":"text","content":"Contact Gold Closes C$14.77 Million Public Offering and Retires Preferred StockVancouver, British Columbia--(Newsfile Corp. - September 29, 2020) - Contact Gold Corp. (TSXV: C) and (OTCQB: CGOL) (the \"Company\" or \"Contact Gold\") is pleased to announce that it has completed its previously announced public offering of units (\"Units\") for aggregate gross proceeds of C$14,774,000 (the \"Offering\").The Offering was conducted by Cormark Securities Inc. along with its US affiliate Cormark Securities (USA) Limited (together, the \"Underwriters\") pursuant to which a total of 73,870,000 Units were sold at a price of $0.20 per Unit (\"Offering Price\"), which included the partial exercise by the Underwriters of the over-allotment option. Each Unit consisted of one share of common stock in the capital of the Company (a \"Share\", and as a constituent of the Unit, a \"Unit Share\") and one-half of one Share purchase warrant (each whole warrant, a \"Warrant\"), with each Warrant entitling the holder thereof to acquire, subject to adjustment in certain circumstances, one Share at an exercise price of C$0.27 until September 29, 2022. For further information about the Offering, refer to the Company's news releases dated August 6, 2020, August 10, 2020, and September 23, 2020.Concurrent with closing of the Offering, Contact Gold redeemed and retired all of the issued shares of preferred stock (\"Preferred Shares\") in the following steps pursuant to the binding letter agreement (\"Binding LOI\") with Waterton Nevada Splitter, LLC (\"Waterton\"):Contact Gold made a cash payment of C$5,000,000 from the proceeds of the Offering to redeem a portion of the Preferred Shares;Waterton, the holder of the Preferred Shares, purchased a total of 69,412,978 Shares pursuant to a private placement at a price per share of $0.195 for aggregate gross proceeds of approximately C$13.54 million (the \"Redemption Placement\"); and Contact Gold applied the proceeds of the Redemption Placement to redeem all of the remaining outstanding Preferred Shares (the \"Redemption\").Contact Gold intends to use the remaining net proceeds of the Offering to undertake further drilling at the Company's Green Springs and Pony Creek projects located in Nevada, for exploration on its other properties, and for general working capital purposes, as further detailed in the Prospectu...