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GFG Resources Closes C$5.9 Million Oversubscribed Private Placement & Welcomes Alamos Gold as Strategic Investor
SASKATOON, Saskatchewan, May 06, 2020 (GLOBE NEWSWIRE) -- GFG Resources Inc. (TSX-V: GFG) (OTCQB: GFGSF) (“GFG” or the “Company”) announces that it has closed t
About this update from Gfg Resources, Inc.
[{"type":"text","content":" SASKATOON, Saskatchewan, May 06, 2020 (GLOBE NEWSWIRE) -- GFG Resources Inc. (TSX-V: GFG) (OTCQB: GFGSF) (“GFG” or the “Company”) announces that it has closed the oversubscribed, non-brokered private placement financing (the “Offering”) (see news releases dated April 21, 2020 and April 29, 2020) for gross proceeds of C$5,905,624. As previously disclosed, Alamos Gold Inc. (TSX: AGI; NYSE: AGI) (“Alamos”) has purchased securities under the Offering to obtain a 9.9% interest in the Company. Pursuant to the Offering, the Company issued (i) 15,818,420 common shares of the Company that will qualify as “flow-through shares” (“FT Shares”) for the purposes of the Income Tax Act (Canada) at a price of C$0.2907 per share for gross proceeds of C$4,598,415 and (ii) 6,880,045 non-flow-through common shares (“NFT Shares”) of the Company at a price of C$0.19 per share for gross proceeds of C$1,307,209. “The Company is pleased to close the oversubscribed financing and welcomes Alamos as a strategic investor,” stated Brian Skanderbeg, President and CEO of GFG. “With a strong treasury and multiple highly prospective targets, we are excited to resume our 2020 exploration programs to demonstrate the potential for the Pen Gold Project to host multiple gold deposits next to the world-class Timmins gold camp.” John A. McCluskey, President and CEO of Alamos Gold Inc. commented, “We are excited to be a strategic investor in GFG as they explore for new gold deposits in one of Canada’s richest and most prospective gold trends. GFG has strong geological capability and has assembled a large and impressive land package. We believe they have the right approach to exploration and we wish them well as the 2020 field season gets underway.” Corporate UpdateThe Company expects to receive the final assay results from the remaining six drill holes from the 2020 Phase 1 drill program in the coming weeks. Following the receipt and release of the assay results, the Company will provide a detailed and expanded 2020 exploration plan for the Pen and Dore gold projects. In connection with the Offering, Alamos has been granted certain participation rights to maintain its pro rata ownership interest in the Company. The gross proceeds raised from the sale of the FT Shares will be used for exploration activities in Ontario that will qualify as “Canadian Exploration Expens...