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GFG Resources Completes Acquisition of West Porcupine and Swayze Properties and First Tranche of Private Placement
SASKATOON, Saskatchewan, Dec. 21, 2017 (GLOBE NEWSWIRE) -- GFG Resources Inc. (TSX-V:GFG) (OTCQB:GFGSF) (“GFG” or the “Company”) is pleased to announce that fur
About this update from Gfg Resources, Inc.
[{"type":"text","content":"SASKATOON, Saskatchewan, Dec. 21, 2017 (GLOBE NEWSWIRE) -- GFG Resources Inc. (TSX-V:GFG) (OTCQB:GFGSF) (“GFG” or the “Company”) is pleased to announce that further to its press release dated December 11, 2017 it has completed the acquisition of the West Porcupine Property from Probe Metals Inc. (TSX-V:PRB) (“Probe”) (the “West Porcupine Property Acquisition”) and the Swayze Project from Osisko Mining Inc. (TSX:OSK) (“Osisko”) (the “Swayze Property Acquisition”). Immediately prior to closing the acquisitions, the Company also closed the first tranche of its non-brokered private placement (the “Concurrent Financing”) for gross proceeds of C$4,228,305. West Porcupine Property Acquisition GFG has acquired Probe’s 100% interest in the West Porcupine property, a land package consisting of 198 claims and covering approximately 245 km2 located 50 kilometres southwest of Timmins, Ontario, in exchange for the issuance of 6,477,883 common shares of GFG, representing an implied purchase price of approximately C$3.5 million based on GFG’s 20-day volume weighted average share price (“VWAP”) ending December 7, 2017. Swayze Property Acquisition GFG has acquired Osisko’s 100% interest in the Swayze property, a land package consisting of 56 claims and covering approximately 120 km2 located 40 kilometres from Borden, Ontario, in exchange for the issuance of 1,110,494 common shares of GFG, representing an implied purchase price of approximately C$600,000 based on GFG’s 20-day VWAP ending December 7, 2017. Concurrent Private Placement The Company has completed the first tranche of the Concurrent Financing by way of a non-brokered private placement. Due to higher than expected demand, the Company increased its flow-through common shares offering previously announced (See news release dated December 11, 2017) from 3,636,364 to 5,460,555 flow-through common shares at a price of C$0.55 per share for gross proceeds of C$3,003,305 (the “FT Private Placement”). The Company also issued 2,450,000 units at a price of C$0.50 per unit for gross proceeds of C$1,225,000 (the “Non-FT Private Placement”), with each unit consisting of one common share and one-half of a common share purchase warrant. Each whole warrant will entitle the holder to purchase one additional common share at an exercise price of C$0.75 for a period of 24 months following closing. Gro...