Business
Newcore Gold Completes $15 Million Bought Deal Offering
VANCOUVER, British Columbia, Nov. 04, 2020 (GLOBE NEWSWIRE) -- Newcore Gold Ltd. ("Newcore" or the "Company") (TSX-V: NCAU) is pleased to announce that it has c
About this update from Newcore Gold Ltd.
[{"type":"text","content":" VANCOUVER, British Columbia, Nov. 04, 2020 (GLOBE NEWSWIRE) -- Newcore Gold Ltd. (\"Newcore\" or the \"Company\") (TSX-V: NCAU) is pleased to announce that it has closed its previously announced bought deal prospectus offering (the \"Offering\"). Haywood Securities Inc. and Stifel GMP acted as co-lead underwriters and joint book-runners, on behalf of a syndicate of underwriters that included Cormark Securities Inc., Raymond James Ltd., and Sprott Capital Partners LP (collectively, the \"Underwriters\"). Pursuant to the Offering, the Company issued a total of 18,750,000 common shares of the Company (the \"Common Shares\") at a price of $0.80 per Common Share for gross proceeds to the Company of $15,000,000. The Common Shares were offered by way of a short form prospectus in British Columbia, Alberta and Ontario. The net proceeds of the Offering will be used for exploration and development of Newcore’s Enchi Gold Project in southwest Ghana, as well as for working capital and general corporate purposes. Luke Alexander, President & CEO of Newcore stated, \"We would like to welcome our new shareholders and thank our existing holders for their continued support in funding the advancement of our Enchi Gold Project. Newcore is well positioned to continue to unlock the value of Enchi given its strong institutional support, along with shareholder alignment through management and insiders’ 32% equity ownership. This funding will allow us to accelerate development of Enchi by expanding and accelerating the drilling program on the property, focused on both near-resource growth, exploration of identified targets across the broader property and drilling targets at depth.\" In connection with the Offering, the Underwriters received a cash commission of 5% of the gross proceeds of the Offering up to $8 million and 6% of the gross proceeds of the Offering above $8 million (reduced to 2% in respect of sales to purchasers on the president’s list which accounted for gross proceeds of $1 million). Certain directors and management of the Company (the “Insiders”) purchased an aggregate of 525,000 Common Shares pursuant to the Offering. Participation by the Insiders in the Offering was considered a “related party transaction” pursuant to Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”). ...