Business
Generic Gold Announces Closing of $7M Private Placement of Units and Flow-Through Units
Toronto, Ontario--(Newsfile Corp. - August 11, 2020) - Generic Gold Corp. (CSE: GGC) (FSE: 1WD) ("Generic Gold" or the "Company") is pleased to announce that fu
About this update from Generic Gold Corp.
[{"type":"text","content":" Toronto, Ontario--(Newsfile Corp. - August 11, 2020) - Generic Gold Corp. (CSE: GGC) (FSE: 1WD) (\"Generic Gold\" or the \"Company\") is pleased to announce that further to its press release of June 27, 2020, the Company has completed its previously announced \"best-efforts\" brokered private placement financing through the issuance of an aggregate of 16,858,298 units (the \"Units\") of the Company at a price of $0.35 per Unit and an aggregate of 2,857,500 flow-through units (the \"FT Units\" and together with the Units, the \"Offered Securities\") of the Company at a price of $0.40 per FT Unit for gross proceeds of $7,043,404.30 (the \"Offering\"). The Offering was led by StephenAvenue Securities Inc., as sole agent and sole bookrunner (the \"Agent\"). Each Unit is comprised of one common share (each, a \"Common Share\") in the capital of the Company and one Common Share purchase warrant (each, a \"Unit Warrant\"). Each Unit Warrant entitles the holder thereof to acquire one Common Share at a price of $0.50 until August 10, 2022. Each FT Unit is comprised of one Common Share, which shall qualify as \"flow-through shares\" (as such term is defined in subsection 66(15) of the Income Tax Act (Canada)) (each, a \"FT Share\") and one-half of one common share purchase warrant, issued on a non-flow-through basis (each, whole warrant a \"FT Unit Warrant\"). Each FT Unit Warrant entitles the holder thereof to purchase one additional Common Share, issued on a non-flow-through basis, at a price of $0.50 until August 10, 2022. The net proceeds from the sale of the Units will be used for general working capital and exploration purposes. The gross proceeds from the sale of the FT Units will be used by the Company to incur eligible \"Canadian exploration expenses\" that will qualify as \"flow-through mining expenditures\" (as such terms are defined in the Income Tax Act (Canada)) (the \"Qualifying Expenditures\") related to the Company's projects in Canada. All Qualifying Expenditures will be renounced in favour of the subscribers of the FT Units effective December 31, 2020. It is anticipated that most of the funds derived from the sale of the FT Units will be used to explore the Company's recently acquired Belvais project. Richard Patricio, President and CEO of Generic Gold, stated, \"We are very excited for this opportunity to advance expl...