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GFG Resources Closes Oversubscribed Private Placement of C$3.1 Million
SASKATOON, Saskatchewan, Nov. 30, 2021 (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, Nov. 30, 2021 (GLOBE NEWSWIRE) -- GFG Resources Inc. (TSX-V: GFG) (OTCQB: GFGSF) (“GFG” or the “Company”) announces that it has closed the oversubscribed, private placement financing (the “Offering”) (see news release dated November 9, 2021) for gross proceeds of C$3,114,653. Pursuant to the Offering, the Company issued (i) 6,501,514 units of the Company (“Units”) at a price of C$0.145 per Unit for gross proceeds of C$942,719 ; (ii) 6,261,676 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$0.17 per FT Share for gross proceeds of C$1,064,484 ; and (iii) 5,350,000 premium units of the Company (“Premium Units”) at a price of C$0.207 per Premium Unit for gross proceeds of C$1,107,450 . 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$0.22 for a period of 24 months from the date of issuance. Each Premium Unit consists of one FT Share (a “Premium FT Share”) and one-half of one Warrant. “The Company is pleased to close the oversubscribed financing and grateful for the continued support from our existing and new owners,” stated Brian Skanderbeg, President and CEO of GFG. “With the financing complete, we are well positioned to continue our aggressive exploration approach to advance both our Ontario and Wyoming gold projects. In 2021, we have made several strategic moves that have significantly reduced our exploration risk and I am confident that we will be able to provide on-going catalysts that have the potential to create significant shareholder value.” The gross proceeds raised from the sale of the FT Shares and Premium Units 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 will be used for exploration activities on the Company’s projects in Ontario as well as for general working capital purposes. If during the exercise period of the Warrants, but a...