Business
Onyx Announces an Increase to Its Previously Announced Financing to $11 Million with the Addition of a $3 Million Second Tranche of Flow-Through Shares
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About this update from Onyx Gold Corp.
[{"type":"text","content":"Onyx Announces an Increase to Its Previously Announced Financing to $11 Million with the Addition of a $3 Million Second Tranche of Flow-Through SharesNot for distribution to United States newswire services or for dissemination in the United StatesVancouver, British Columbia--(Newsfile Corp. - May 8, 2025) - Onyx Gold Corp. (TSXV: ONYX) (OTCQX: ONXGF) (\"Onyx\" or the \"Company\") is pleased to announce that in connection with its previously announced $3,000,000 non-brokered private placement with a strategic investor (the \"Concurrent Private Placement\") and $5,000,000 \"bought deal\" private placement, the Company and Cormark Securities Inc., together with Agentis Capital Markets Limited Partnership on behalf of a syndicate of underwriters (collectively, the \"Underwriters\"), have agreed to add a second tranche of flow-through shares to the \"bought deal\" private placement, for aggregate gross proceeds of approximately $8,038,000 (the \"Offering\"). The Company expects aggregate gross proceeds of approximately $11,038,000 between both the Offering and Concurrent Private Placement.The Offering will consist of (a) the issuance and sale of 5,000,000 common shares of the Company that qualify as \"flow-through shares\" (within the meaning of subsection 66(15) of the Tax (as defined below) (the \"Tranche 1 FT Shares\") at a price of $1.00 per Tranche 1 FT Share for aggregate gross proceeds of $5,000,000, and (b) 3,100,000 common shares of the Company that qualify as \"flow-through shares\" (the \"Tranche 2 FT Shares\") at a price of $0.98 per Tranche 2 FT Share for aggregate gross proceeds of $3,038,000.The Company will use an amount equal to the aggregate gross proceeds received by the Company from the sale of the Tranche 1 FT Shares and the Tranche 2 FT Shares (collectively, the \"FT Shares\"), pursuant to the provisions in the Income Tax Act (Canada) (the \"Tax Act\"), to incur (or be deemed to incur) eligible \"Canadian exploration expenses\" that qualify as \"flow-through mining expenditures\" (as both terms are defined in the Tax Act) (the \"Qualifying Expenditures\") related to the Company's projects in Ontario and the Yukon, on or before December 31, 2026, and to renounce all the Qualifying Expenditures in favour of the subscribers of the FT Shares effective December 31, 2025. In the case of the Tranche 1 FT Shares, the C...