Business
Getchell Gold Corp. Completes Final Tranche of $1,650,000 Private Placement
Toronto, Ontario--(Newsfile Corp. - January 29, 2020) - Getchell Gold Corp. (CSE: GTCH) ("Getchell" or the "Company") is pleased to announce it has closed the s
About this update from Getchell Gold Corp.
[{"type":"text","content":" Toronto, Ontario--(Newsfile Corp. - January 29, 2020) - Getchell Gold Corp. (CSE: GTCH) (\"Getchell\" or the \"Company\") is pleased to announce it has closed the second and final tranche of its previously announced non-brokered private placement. The second tranche consisted of the issuance of 6,491,667 units (each a \"Unit\") at a price of $0.10 per Unit for gross proceeds of $649,167, and combined with the first tranche, the Company raised aggregate gross proceeds of $1,650,000. Each Unit consists of one common share and one warrant of the Company. Each warrant entitles the holder to acquire one common share at a price of $0.14 per share for a period of two years from the date of issuance. At the Company's option, the exercise of the warrants issued under the private placement can be accelerated if the closing price of the Company's common shares trade above $0.25 for 10 consecutive days. If the Company elects to accelerate the exercise of warrants, the warrant holders will have 30 days to exercise their warrants after receiving notice via press release from the Company. In connection with the second tranche, the Company paid aggregate finder's fees of $33,500 in cash and issued 251,000 non-transferable compensation options and 84,000 non-transferable finder's warrants. Each compensation option is exercisable at a price of $0.10 per unit to acquire either: (a) one common share and one warrant until January 29, 2022; or (b) one common share until January 29, 2025. Each warrant entitles the holder to acquire one common share at a price of $0.14 per share for a period of two years from the date of issuance. The Company's use of net proceeds from the financing is for: US$100,000 payment to Canarc Resources Corp. (\"Canarc\") and first year work commitment, due under the definitive agreement between Getchell and Canarc, whereby Getchell holds the option to acquire 100% of the Fondaway Canyon and Dixie Comstock properties (the \"Properties\") located in Nevada, from Canarc (see news releases dated October 17, 2019 and January 7, 2020 - http://www.getchellgold.com/news.html), as well as further exploration of the Properties and Star Point and Hot Springs Peak projects, and general working capital. The US $100,000 first year cash and share payments due to Canarc have been delivered. The securities issued pursuant to the final tranch...