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Contact Gold Closes Second Tranche of Private Placement
Vancouver, British Columbia--(Newsfile Corp. - May 5, 2020) - Contact Gold Corp. (TSXV: C) (t...
About this update from Commodore Metals Corp.
[{"type":"text","content":"Contact Gold Closes Second Tranche of Private PlacementVancouver, British Columbia--(Newsfile Corp. - May 5, 2020) - Contact Gold Corp. (TSXV: C) (the \"Company\" or \"Contact Gold\") is pleased to announce, further to its news releases dated March 27, and April 17, the closing of the second tranche of the non-brokered private placement (the \"Offering\") of units of the Company (\"Units\") resulting in the issuance of an additional 3,350,000 Units at a price of $0.10 per Unit for gross proceeds of $335,000. In aggregate with the closing of the first tranche of the Offering, announced April 24, 2020, the Company has issued 10,870,000 Units, for gross proceeds of $1,087,000.Each Unit consists of one common share of the Company (a \"Common Share\") and one Common Share purchase warrant (a \"Warrant\"), with each Warrant entitling the holder to purchase an additional Common Share at a price of $0.15 per share for a period of 24 months from the closing date (the \"Expiry Date\"). In the event that at any time between four months and one day following the closing date and the Expiry Date, the Common Shares trade on the TSX Venture Exchange (the \"TSXV\") at a closing price which is equal to or greater than $0.30 for a period of ten consecutive trading days, the Company may accelerate the expiry date of the Warrants by giving notice to the holders thereof and in such case the Warrants will expire on the 30th day after the date such notice is provided.In connection with the closing of this second tranche of the Offering, the Company paid an aggregate of $9,300 in cash finders' fees to eligible finders.Net proceeds of the Offering are expected to be used to undertake further drilling at Contact Gold's Green Springs and Pony Creek gold projects located in Nevada, and for general working capital.Subject to final TSXV approval, the Company expects a third tranche to close on or about May 11, 2020.The offered securities have not been, nor will they be, registered under the United States Securities Act of 1933, as amended (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. O...