Business
Onyx Arranges $3 Million Investment by Strategic Investor and Concurrent $5 Million Bought Deal Financing
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About this update from Onyx Gold Corp.
[{"type":"text","content":"Onyx Arranges $3 Million Investment by Strategic Investor and Concurrent $5 Million Bought Deal FinancingNot for distribution to United States newswire services or for dissemination in the United StatesVancouver, British Columbia--(Newsfile Corp. - May 7, 2025) - Onyx Gold Corp. (TSXV: ONYX) (OTCQX: ONXGF) (\"Onyx\" or the \"Company\") announces today that it has entered into an agreement with Cormark Securities Inc. and and Agentis Capital Markets Limited Partnership, as co-lead underwriters on behalf of a syndicate of underwriters (collectively, the \"Underwriters\"), in connection with a \"bought deal\" private placement 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 \"FT Shares\") at a price of $1.00 per FT Share, for gross proceeds of $5,000,000 (the \"Offering\").Concurrent with the Offering, the Company intends to complete a non-brokered private placement with a strategic investor, a large international gold mining company, of 3,490,343 common shares of the Company (\"Non-FT Shares\") at a price of $0.85 per Non-FT Share for aggregate gross proceeds of approximately $3,000,000 (the \"Concurrent Private Placement\"). The Company expects aggregate gross proceeds of approximately $8,000,000 between both the Offering and the Concurrent Private Placement. The $3.0 million Non-FT Share placement by the strategic investor is anticipated to bring their total holdings to 9.9% of the Company's issued and outstanding shares on a pro-forma basis. The Company will use an amount equal to the gross proceeds received by the Company from the sale of 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 critical mineral 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. If the Qualifying Expenditures are reduced by the Canada Revenue Agency, the Company will indemnify each FT Share subscriber for any additional taxes payable by su...