Business
Precipitate Announces Proposed Private Placement of Flow Through and Non-Flow Through Units
Vancouver, British Columbia--(Newsfile Corp. - December 7, 2021) - Precipitate Gold Corp. (T...
About this update from Precipitate Gold Corp.
[{"type":"text","content":"Precipitate Announces Proposed Private Placement of Flow Through and Non-Flow Through UnitsVancouver, British Columbia--(Newsfile Corp. - December 7, 2021) - Precipitate Gold Corp. (TSXV: PRG) (OTCQB: PREIF) (the \"Company\" or \"Precipitate\") announces a non-brokered private placement (the \"Offering\") for gross proceeds of up to $750,000.The Offering will consist of two parts:flow-through units at $0.10 per unit, each unit consisting of one flow-through common share and one-half of a warrant, each whole warrant exercisable at $0.15 per share for 24 months; andnon-flow-through units at $0.09 per unit, each unit consisting of one non-flow-through common share and one-half of a warrant, each whole warrant exercisable at $0.15 per share for 24 months.The proceeds from the Offering will be used for exploration and development of the Company's mineral property interests in Newfoundland, Canada, and for general working capital purposes. The gross proceeds from the issuance of all flow-through shares will be used to incur Canadian Exploration Expenses (\"CEE\"), and will qualify as \"flow-through mining expenditures\" under the Income Tax Act (Canada), which will be renounced to the purchasers of flow-through shares with an effective date no later than December 31, 2021 in an aggregate amount no less than the proceeds raised from the issue of the flow-through shares.Closing of the Offering is subject to certain customary conditions, including, but not limited to, the receipt of all necessary regulatory approvals and acceptance of the TSX Venture Exchange. All securities issued under the Offering will be subject to a statutory hold period of four months plus a day following the date of closing. Red Cloud Securities Inc. is acting as a finder in connection with the flow through component of the Offering. The Company may pay additional finder's fees on a portion of the Offering, subject to compliance with the policies of the TSX Venture Exchange and applicable securities legislation. The Offering is being made available to all existing shareholders of the Company, pursuant to BCI 45-534 - Exemption from Prospectus Requirements for Certain Trades to Existing Security Holders, and similar instruments in other Canadian jurisdictions. In this regard, (i) the Offering will be subject to a minimum raise of $350,000 and a maximum raise o...