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GFG Resources Closes First Tranche of Private Placement
SASKATOON, Saskatchewan, Oct. 24, 2019 (GLOBE NEWSWIRE) -- GFG Resources Inc. (TSX-V: GFG) (OTCQB: GFGSF) (“GFG” or the “Company”) announces that it has closed
About this update from Gfg Resources, Inc.
[{"type":"text","content":" SASKATOON, Saskatchewan, Oct. 24, 2019 (GLOBE NEWSWIRE) -- GFG Resources Inc. (TSX-V: GFG) (OTCQB: GFGSF) (“GFG” or the “Company”) announces that it has closed the first tranche of the previously announced non-brokered private placement (the “Offering”) for gross proceeds of C$3,066,073 million. “We are grateful for the support and confidence from our existing and new shareholders in our unwavering and disciplined pursuit to deliver shareholder value through discovery”, stated Brian Skanderbeg, President and CEO of GFG. “This financing will allow us to follow-up on our recent discoveries at the Pen Gold Project, located west of the Timmins Gold District, and further advance our Rattlesnake Hills Gold Project with our partner Newcrest Mining Ltd. Over the past year, we have significantly advanced both projects and we look forward to providing numerous catalysts from the on-going and upcoming drill programs.” Pursuant to the closing of the first tranche of the Offering, the Company issued (i) 5,025,555 units of the Company (“Units”) at a price of C$0.18 per Unit for gross proceeds of C$904,600, with each Unit consisting of one common share of the Company (which is not a “flow-through share”) and one-half of one share purchase warrant, with each whole share purchase warrant (a “Warrant”) entitling the holder thereof to acquire one additional common share of the Company (which shall not be a “flow-through share”) at an exercise price of C$0.27 for a period of 24 months from the date of issuance; (ii) 3,334,546 common shares of the Company that qualify as \"flow-through shares\" for the purposes of the Income Tax Act (Canada) (“FT Shares”) at a price of C$0.22 per FT Share for gross proceeds of C$733,600; and (iii) 5,192,267 charity units of the Company (“Charity Units”) at a price of C$0.275 per Charity Unit for gross proceeds of C$1,427,873, with each Charity Unit consisting of one FT Share (a “Charity FT Share”) and one-half of one Warrant. The gross proceeds raised from the sale of the FT Shares and Charity FT Shares will be used for exploration activities in Ontario that will qualify as “Canadian Exploration Expenses” (within the meaning of the Income Tax Act (Canada)). The net proceeds raised from the sale of the Units and the Warrants comprising, in part, the Charity Units, will be used for exploration activities on the ...