Business
Getchell Gold Corp. Completes First Tranche of Private Placement for $1,000,833
Toronto, Ontario--(Newsfile Corp. - December 23, 2019) - Getchell Gold Corp. (CSE: GTCH) ("Getchell" or the "Company") is pleased to announce it has closed the
About this update from Getchell Gold Corp.
[{"type":"text","content":" Toronto, Ontario--(Newsfile Corp. - December 23, 2019) - Getchell Gold Corp. (CSE: GTCH) (\"Getchell\" or the \"Company\") is pleased to announce it has closed the first tranche of its previously announced non-brokered private placement. The Company issued an aggregate of 10,008,333 units (each a \"Unit\") at a price of $0.10 per Unit for gross proceeds of $1,000,833 in the first tranche closing of the private placement. 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 a news release issued by the Company. In connection with the first tranche, the Company paid aggregate finder's fees of $93,950 in cash, and issued 763,850 non-transferable compensation options and 175,650 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 December 20, 2021; or (b) one common share until December 20, 2024. 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 net proceeds from the financing places Getchell in the position to execute, pending completion of due diligence, on the Binding Letter Agreement that gives Getchell the option to acquire the advanced stage gold exploration assets, the Fondaway Canyon and Dixie Comstock properties (the \"Properties\") located in Nevada, from Canarc (see news release dated October 17, 2019). In addition, the funds can be directed at further exploration of the Company's Star Point and Hot Springs Peak properties, and general working capital.\" The securities issued pursuant to the first tranche of the private placement are subject to a statutory four month hold period expiring on April 21, 2020, in accordance with applicable securities laws. The Company issued a total of 100,000 common shares...