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Snowline Gold Announces Completion of First Tranche of Non-Brokered Private Placement for C$22.3 Million and Grants Stock Options
NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES ...
About this update from Snowline Gold Corp.
[{"type":"text","content":"Snowline Gold Announces Completion of First Tranche of Non-Brokered Private Placement for C$22.3 Million and Grants Stock OptionsNOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICESVANCOUVER, BC / ACCESSWIRE / July 25, 2022 / Snowline Gold Corp. (CSE:SGD) (the \"Company\" or \"Snowline\") is pleased to announce that it has completed the first tranche of its previously announced non-brokered private placement, issuing 7 million flow-through common shares of the Company (the \"FT Shares\") at a price of C$1.40 per FT Share and 10 million units of the Company (the \"Units\") at a price of C$1.25 per Unit, for aggregate gross proceeds of C$22.3 million. Each Unit is comprised of one common share of the Company and one-half of one common share purchase warrant (each whole common share purchase warrant, a \"Warrant\"), with each Warrant being exercisable for one common share of the Company at an exercise price of C$2.50 until July 22, 2024 (the \"Offering\").\"With the close of this first tranche, Snowline is well funded to explore through the next two field seasons,\" said Scott Berdahl, CEO and director of Snowline. \"The funds also allow us to accelerate our exploration plan, effectively bringing drill holes we'd anticipated for 2023 into the current season, and from 2024 into 2023. We are grateful for the ongoing support of Crescat Capital and of other shareholders who made this transformative financing possible amidst challenging capital market conditions.\"Figure 1 - A visual breakdown of the Offering. The Unit component is a \"hard dollar\" (i.e. non-flow through) raise, and the Warrants are valid for two years. The FT Shares do not involve warrants, and they are supported by strong back-end Snowline investors who do not receive the flow-through benefits. *Note that the second tranche of the financing has not yet closed and is still on track for an anticipated close date of August 2, 2022.The gross proceeds from the issue and sale of the FT Shares will be used to support advancement of exploration on the Company's Yukon Territory mineral properties, which will qualify as \"Canadian Exploration Expenses\" and \"flow-through mining expenditures\", as those terms are defined in the Income Tax Act (Canada), which will be renounced to the initial purchasers of the FT Shares with an effective date ...