Business
Gold Terra Resource Corp. Announces Closing of C$5.6 Million Bought Deal Financing
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About this update from Gold Terra Resource Corp.
[{"type":"text","content":"Gold Terra Resource Corp. Announces Closing of C$5.6 Million Bought Deal FinancingNot for distribution to U.S. news wire services or dissemination in the United States.VANCOUVER, BC / ACCESSWIRE / February 28, 2022 / Gold Terra Resource Corp. (TSX-V:YGT; Frankfurt:TX0; OTCQX:YGTFF) (\"Gold Terra\" or the \"Company\") is pleased to announce that it has closed its previously announced bought deal financing (the \"Offering\"), including the exercise in full of the underwriters' over-allotment option. Pursuant to the Offering, (i) 8,912,500 charitable flow-through common shares (the \"Charitable FT Shares\") were issued at a price of C$0.30 per Charitable FT Share, (ii) 8,046,700 traditional flow-through common shares (the \"Traditional FT Shares\") were issued at a price of C$0.24 per Traditional FT Share, and (iii) 4,761,966 common shares (the \"Common Shares\") were issued at a price of C$0.21 per Common Share, for aggregate gross proceeds of C$5.6 million.The Offering was made through a syndicate of underwriters led by Stifel GMP and including BMO Capital Markets and Beacon Securities Limited (collectively, the \"Underwriters\"). The Underwriters received a cash commission equal to 7% of the gross proceeds of the Offering.The gross proceeds from the sale of the Charitable FT Shares and the Traditional FT Shares will be used for expenditures which qualify as \"Canadian exploration expenses\" (\"CEE\") and \"flow-through mining expenditures\" both within the meaning of the Income Tax Act (Canada). The Company will renounce such CEE with an effective date of no later than December 31, 2022. The net proceeds from the sale of the Common Shares will be used for working capital and general corporate purposes.The Offering was completed by way of a short form prospectus filed in each of the provinces of Canada (other than Quebec) and the Northwest Territories and the Common Shares were sold outside of Canada on a private placement basis.Directors and officers of Gold Terra participated in the Offering and were issued an aggregate of 700,000 Common Shares and 200,000 Traditional FT Shares. Such participation in the Offering constitutes a \"related party transaction\" as defined in Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions (\"61-101\"). The Offering is exempt from the formal valuation ...