Business
Headwater Gold Announces Strategic Investment by Centerra Gold
Vancouver, British Columbia - TheNewswire - September 9, 2024: Headwater Gold Inc. (CSE: HWG) (OTCQB: HWAUF) (the "Company" or "Headwater") is pleased to announ
About this update from Headwater Gold, Inc.
[{"type":"text","content":"Vancouver, British Columbia - TheNewswire - September 9, 2024: Headwater Gold Inc. (CSE: HWG) (OTCQB: HWAUF) (the \"Company\" or \"Headwater\") is pleased to announce that the Company and Centerra Gold Inc. (“Centerra”) have agreed to a strategic investment under which Centerra will acquire 9.9% of the issued and outstanding common shares of the Company. Centerra will purchase, through a non-brokered private placement, 7,000,000 common shares of the Company at a price of $0.22 per share for gross proceeds of $1,540,000 (the “Offering”). The issue price represents a 15% premium to the last closing price of Headwater common shares on the Canadian Securities Exchange (“CSE”) as of September 6, 2024. Caleb Stroup, President and CEO of the Company, states: “We are very pleased to welcome Centerra as a new strategic Headwater shareholder. The Company continues to advance our mission of delivering value through the discovery of high-grade, high-upside gold deposits in one of the most mining friendly jurisdictions in the world and I believe this represents a great vote of confidence in both our technical work and overall business strategy. This additional capital comes at an attractive premium and favorable terms for shareholders and will result in a strong treasury position of over $4M to accelerate our ongoing generative initiatives and 100% funded exploration activities in Nevada in a rising gold price environment.” The proceeds from the Offering will be used for exploration activities at the Company’s western United States projects and for general working capital. The closing of the Offering is subject to certain conditions including, but not limited to, approval of the CSE and receipt of all required regulatory and other approvals. The Company anticipates the Offering will close on September 16, 2024 and does not intend to expand the offering beyond the participation by Centerra. The Company and Centerra will enter into an investor rights agreement, whereby, subject to certain conditions, including time and ownership thresholds, Centerra will retain certain limited rights, including the right to participate in future equity issuances to maintain its percentage ownership in the Company. All securities issued will be subject to a statutory hold period of four months and one day. This press release does not con...