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FenixOro Gold Closes First Tranche of Private Placement Gross Proceeds of $369,000 To Continue Drilling of Southern Block
TORONTO, July 05, 2022 (GLOBE NEWSWIRE) -- FenixOro Gold Corp. (CSE: FENX; OTCQB: FDVXF; Frankfurt: 8FD) (the “Company”) is pleased to announce that it has clos
About this update from Fenixoro Gold Corp.
[{"type":"text","content":" TORONTO, July 05, 2022 (GLOBE NEWSWIRE) -- FenixOro Gold Corp. (CSE: FENX; OTCQB: FDVXF; Frankfurt: 8FD) (the “Company”) is pleased to announce that it has closed the first tranche of its non-brokered private placement (the \"Private Placement\"), previously announced on June 15, 2022. The Company has issued a total 2,050,000 Units (\"Units\") at a subscription price of $0.18 per Unit for gross proceeds of $369,000 in this first tranche. Each Unit consists of one common share of the Company and one common share purchase warrant, with each warrant being exercisable for one additional common share at an exercise price of $0.23 for a period of two years from their date of issuance. The Company intends to use the net proceeds of the Private Placement to continue its Phase 2 drilling program at the Abriaqui Project, with a focus on the area surrounding the newly discovered Prospera Vein (for further information see the Company’s press release of June 9, 2022). The Prospera discovery is significant in that it is near the top of a ridge in the southern block and has shown the highest grades of gold and silver ever recorded on the project. Over a continuous 100 meter sampling of the mine working the massive sulfide core averages 39.2 g/t gold (1.26 oz/t) and 254 g/t silver (8.17 oz/t). Directors and officers of the Company acquired 800,000 Units pursuant to Private Placement, for aggregate gross proceeds of $144,000. This subscription of Units by insiders constitutes a “related party transaction” under Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions (“MI 61-101”). However, the related party transaction is exempt from the formal valuation requirements of Section 5.4 of MI 61-101 pursuant to subsection 5.5(a) of MI 61-101, and exempt from the minority approval requirements of Section 5.6 of MI 61-101 pursuant to subsection 5.7(1)(a) of MI 61-101. A material change report was not filed more than 21 days prior to closing as contemplated by the related party transaction requirements under MI 61-101 as the insider participation was only recently confirmed. The Company intends to complete a second tranche closing of the Private Placement in the coming weeks for anticipated additional gross proceeds of up to $2.6 million. All securities issued...