Business
Gold Terra Resource Corp. Announces Closing of C$7.13 Million Financing
Not for distribution to U.S. news wire services or dissemination in the United States. V...
About this update from Gold Terra Resource Corp.
[{"type":"text","content":"Gold Terra Resource Corp. Announces Closing of C$7.13 Million FinancingNot for distribution to U.S. news wire services or dissemination in the United States.VANCOUVER, BC / ACCESSWIRE / July 14, 2020 / Gold Terra Resource Corp. (TSX-V:YGT)(Frankfurt:TX0)(OTC Pink:TRXXF) (\"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, a total of 12.7 million common shares of Gold Terra (the \"Common Shares\") were sold at a price of C$0.30 per Common Share and 8 million charity flow-through common shares of Gold Terra (the \"Charity Flow-Through Common Shares\") were sold at a price of C$0.415 per Charity Flow-Through Common Share, for aggregate gross proceeds of C$7,130,000.The Offering was made through a syndicate of underwriters led by BMO Capital Markets and including Beacon Securities Limited and Stifel GMP (collectively, the \"Underwriters\"). The Underwriters received a cash commission equal to 6% of the gross proceeds of the Offering (other than from the issue and sale of the Common Shares and the Charity Flow-Through Common Shares to certain purchasers on a president's list, for which a 2% cash commission was paid).The Offering was completed by way of a short form prospectus filed in all of the provinces of Canada, except Québec, and the Common Shares were sold elsewhere outside of Canada on a private placement basis.The net proceeds from the sale of the Common Shares will be used to advance exploration at the Company's wholly-owned Yellowknife City Gold project, for working capital, and for general corporate purposes.The gross proceeds from the sale of the Charity Flow-Through Common 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, 2020.Four directors and officers of Gold Terra have participated in the Offering and were issued an aggregate of 1,080,000 Common Shares. Such participation in the Offering constitutes a \"related party transaction\" as defined in Multilateral Instrument 61-101 - Protection of Min...