Business
E2Gold Announces Closing of First Tranche of Private Placement
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES OF ...
About this update from E2gold, Inc.
[{"type":"text","content":"E2Gold Announces Closing of First Tranche of Private PlacementNOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES OF AMERICATORONTO, ON / ACCESSWIRE / March 17, 2022 / E2Gold Inc. (TSXV:ETU)(OTCQB:ETUGF) (the \"Company\" or \"E2\") is pleased to announce that it has closed the first tranche of its previously announced private placement (the \"Offering\") pursuant to which it has issued an aggregate of 5,615,000 units (\"Units\") at a price of $0.10 per Unit and 5,609,454 \"flow-through\" units (FT Units) at a price of $0.11 per FT unit to raise aggregate gross proceeds of $1,178,540. All securities issued and issuable in connection with the first tranche closing of the Offering are subject to a statutory hold period expiring on July 17, 2022.Eric Owens, CEO and President, commented, \"We are very happy with the continued support shown by our shareholders as evidenced by their participation in this financing\". Dr. Owens went on to add \"We have just come off an exciting first-ever step-out drill program beneath the McKinnon Zone, and are busy developing our follow-up summer exploration program.\"The proceeds of the Offering will principally be earmarked for field exploration activities on the Company's flagship Hawkins project in north central Ontario project in northwest Ontario, as well as for general corporate purposes.Each Unit is comprised of one common share of the Company (a \"Common Share\") and one-half Common Share purchase warrant (each whole such Common Share purchase warrant, a \"Warrant\") upon the terms further detailed below. Each FT Unit is comprised of one Common Share that qualifies as a \"flow-through share\" as defined in subsection 66(15) of the Income Tax Act (Canada) (each, a \"FT Share\") and one-half of one Warrant. Each whole Warrant is exercisable to acquire one additional Common Share (which shall not be a \"flow-through\" share) at a price of $0.20, for a period of 24 months from the date of issuance thereof.An amount equal to the gross proceeds allocated to the sale of the FT Units will be used for expenditures which qualify as Canadian exploration expenses (\"CEE\") and \"flow-through mining expenditures\" (within the meaning of the Income Tax Act (Canada)). The Company will renounce such CEE with an effective date of no later than December 31, 2022.In connecti...