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Precipitate Closes Oversubscribed $2.1M Private Placement of Flow Through and Non-Flow Through Units
Vancouver, British Columbia--(Newsfile Corp. - December 30, 2021) - Precipitate Gold Corp. (...
About this update from Precipitate Gold Corp.
[{"type":"text","content":"Precipitate Closes Oversubscribed $2.1M Private Placement of Flow Through and Non-Flow Through UnitsVancouver, British Columbia--(Newsfile Corp. - December 30, 2021) - Precipitate Gold Corp. (TSXV: PRG) (OTCQB: PREIF) (the \"Company\" or \"Precipitate\") is pleased to announce the closing of its non-brokered private placement of 22,454,333 units of the Company for gross proceeds of C$2,179,390 (the \"Offering\").Further to the Company's news releases dated December 7, 2021, and December 20, 2021, the Offering consisted of two parts:flow-through (\"FT\") 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 (\"NFT\") 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. Jeffrey Wilson, Company President & CEO, stated, \"We are pleased to complete this important offering. Investor demand from supportive existing shareholders and new investors alike, allowed the Company to upsize and oversubscribe the offering to facilitate a more aggressive and sustained exploration campaign for the Newfoundland projects in 2022. Meanwhile, the additional non-flow-through dollars, when combined with the existing treasury, provides a healthy working capital to keep the Company moving forward with a view to leveraging value from our projects in the Dominican Republic. We appreciate the support from investors and look forward to an active and prosperous 2022.\"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.The Company paid commissions to finders under the placement consisting of aggregate commissions of C$56,984 cash, 194,444 N...