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GFG Resources Closes Oversubscribed Private Placement Financing
SASKATOON, Saskatchewan, March 21, 2023 (GLOBE NEWSWIRE) -- GFG Resources Inc. (TSXV: GFG) (OTCQB: GFGSF) (“GFG” or the “Company”) has closed the oversubscribed
About this update from Gfg Resources, Inc.
[{"type":"text","content":" SASKATOON, Saskatchewan, March 21, 2023 (GLOBE NEWSWIRE) -- GFG Resources Inc. (TSXV: GFG) (OTCQB: GFGSF) (“GFG” or the “Company”) has closed the oversubscribed, private placement financing (the “Offering”) (see news releases dated February 17, 2023 and March 2, 2023) for gross proceeds of C$4,199,578. In connection with the Offering, Alamos Gold Inc. (“Alamos”) (TSX: AGI; NYSE: AGI) purchased securities to increase their position to a 9.99% interest in the Company. Pursuant to the Offering, GFG issued (i) 13,389,076 units of the Company (“Units”) at a price of C$0.13 per Unit for gross proceeds of C$1,740,580; (ii) 2,250,000 common shares of the Company that will qualify as \"flow-through shares\" for the purposes of the Income Tax Act (Canada) (“FT Shares”) at a price of C$0.15 per FT Share for gross proceeds of C$337,500; and (iii) 11,369,231 premium units of the Company (“Premium Units”) at a price of C$0.1866 per Premium Unit for gross proceeds of C$2,121,498. Each Unit consists of one common share of the Company (which shall not be 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$0.18 for a period of 36 months from the date of issuance. Each Premium Unit shall consist of one FT Share (a “Premium FT Share”) and one-half of one Warrant. If during the exercise period of the Warrants the closing price of the common shares of the Company is at a price equal to or greater than $0.26 for a period of 10 consecutive trading days, GFG will have the right to accelerate the expiry date of the Warrants by giving notice, via a news release, to the holders of the Warrants that the Warrants will expire on the date that is 30 days after the issuance of said news release. The gross proceeds raised from the sale of the FT Shares and Premium 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 Premium Units, will be used for exploration activities on the Company’s projects in Ontario as well as for general working cap...