Business
Contact Gold Closes Private Placement for Gross Proceeds of $2.85 Million
Vancouver, British Columbia--(Newsfile Corp. - March 14, 2019) - Contact Gold Corp. (TSXV: C)...
About this update from Commodore Metals Corp.
[{"type":"text","content":"Contact Gold Closes Private Placement for Gross Proceeds of $2.85 MillionVancouver, British Columbia--(Newsfile Corp. - March 14, 2019) - Contact Gold Corp. (TSXV: C) (the \"Company\" or \"Contact Gold\") is pleased to announce that it has closed the previously announced non-brokered private placement (the \"Offering\") of common shares of the Company (\"Common Shares\"). The Company issued 9,827,589 Common Shares at a price of $0.29 per Common Share for gross proceeds of $2,850,000. Each Common Share is accompanied by one right (a \"Right\") which shall entitle the holder thereof to a certain number of additional Common Shares upon conversion of the Right, with such number of additional Common Shares to be determined based on completion of the first of \"Qualified Offering\", \"Change of Control\" or \"Time Deadline\" milestones, detailed in the Company's press release dated February 4, 2019. The maximum number of additional Common Shares issuable on conversion of the Rights is 2,047,414. The effective price per Common Shares in the Offering, should such maximum number of additional Common Shares be issued, would be $0.24 for each of the 11,875,003 Common Shares.Contact Gold now has 60,424,575 Common Shares issued and outstanding. Insiders of the Company purchased a total of 4,516,396 Common Shares under the Offering.Net proceeds of the Offering are expected to be used to undertake further drilling at Contact Gold's Pony Creek project located in Elko County, Nevada, and for general working capital.The securities issued pursuant to the Offering are subject to a four month and one day statutory hold period expiring on July 15, 2019, and are also deemed to be \"restricted securities\" under Rule 144 of the United States Securities Act of 1933, as amended (the \"Securities Act\"), which generally requires a one-year hold period. The offered securities have not been, nor will they be, registered under the Securities Act or any state securities laws, and may not be offered or sold to, or for the account or benefit of, any person in the United States or any \"U.S person\", as such term is defined in Regulation S under the Securities Act, absent registration or an applicable exemption from registration requirements.Finder fees paid in connection with the Offering in the way of cash totaled $21,750.Completion of the Offering remains sub...