Business
Onyx Gold Closes C$8.36 Million Private Placement
Vancouver, British Columbia--(Newsfile Corp. - July 11, 2023) - Onyx Gold Corp. ("Onyx Gold" or the "Company") and HighGold Mining Inc. (TSXV: HIGH) (OTCQX: HGG
About this update from Onyx Gold Corp.
[{"type":"text","content":"Vancouver, British Columbia--(Newsfile Corp. - July 11, 2023) - Onyx Gold Corp. (\"Onyx Gold\" or the \"Company\") and HighGold Mining Inc. (TSXV: HIGH) (OTCQX: HGGOF) (\"HighGold\") are pleased to announce that Onyx Gold has closed its previously announced private placement (the \"Private Placement\"), pursuant to which Onyx Gold issued 7,888,000 non-flow-through units (each, a \"HD Unit\") at a price of $0.50 per HD Unit and 6,400,000 flow-through units (each, a \"FT Unit\") at a price of $0.69 for gross proceeds of $8,360,000. Following the closing of the Private Placement, there are now 41,208,207 common shares in the capital of Onyx Gold (each, an \"Onyx Share\") issued and outstanding. Each HD Unit and each FT Unit was comprised of one Onyx Share and one-half of one Onyx Share purchase warrant (a \"Warrant\"). Each Warrant is exercisable to acquire one Onyx Share at a price of $0.75 per Onyx Share for a period of 24 months following the date of issuance. The Onyx Shares comprising the FT Units will qualify as \"flow-through shares\" within the meaning of subsection 66(15) of the Income Tax Act (Canada) (the \"Tax Act\"). The net proceeds from the issue of the HD Units will be used for working capital and general corporate purposes. The Company will use an amount equal to the gross proceeds received by the Company from the sale of the FT Units, pursuant to the provisions in the Tax Act, to incur eligible \"Canadian exploration expenses\" that qualify as \"flow-through mining expenditures\" as both terms are defined in the Income Tax Act (Canada) (the \"Qualifying Expenditures\") related to the Onyx Gold's mineral properties, on or before December 31, 2024, and to renounce all the Qualifying Expenditures in favour of the subscribers of the FT Units effective December 31, 2023. In connection with the Private Placement, Onyx Gold paid cash commission in the amount of $42,500 to eligible finders. All securities issued pursuant to the Private Placement are subject to a hold period expiring on November 7, 2023, in addition to such other restrictions as may apply under applicable securities laws of jurisdictions outside Canada. Certain insiders of Onyx Gold (the \"Interested Parties\") purchased or acquired direction or control over a total of 274,000 HD Units as part of ...