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Viva Gold Announces C$5.4 Million Private Placement Offering
VANCOUVER, BC / ACCESSWIRE / March 28, 2022 / Viva Gold Corp. (TSX Venture:VAU) (the "Company" or "Viva") is pleased to announce its intention to undertake a no
About this update from Viva Gold Corp
[{"type":"text","content":" VANCOUVER, BC / ACCESSWIRE / March 28, 2022 / Viva Gold Corp. (TSX Venture:VAU) (the \"Company\" or \"Viva\") is pleased to announce its intention to undertake a non-brokered private placement (the \"Offering\") of up to 45,000,000 shares at a price of CDN$0.12 per share for gross proceeds of up to CDN$5,400,000. Viva Gold plans to allocate the net proceeds of the Offering principally towards advancing its Tonopah Gold Project through drilling, technical and environmental study, and secondarily for general working capital purposes. The Company has reached an agreement in principle with Dundee Corporation (\"Dundee\"), Toronto, Ontario, for its participation in the Offering as the lead subscriber to an extent that will result in Dundee holding up to 19.9% the outstanding post-Offering Viva shares. In addition, RAB Capital Holdings Limited, London, UK, Viva's largest shareholder, has advised Viva that it intends to participate in the Offering. \"Dundee's proposed investment in Viva alongside RAB Capital is a vote of confidence in Viva and its Tonopah Gold Project. This transformational financing will provide the funding required to advance the project into the pre-feasibility/feasibility study and permitting phase\" states James Hesketh, President and CEO. \"The Tonopah project, located in the world-class mining friendly Walker Lane trend of western Nevada, has a strong core of near surface measured and indicated gold resource with excellent exploration upside potential. This combined with paved road access and excellent infrastructure makes the project a strong target for growth and value addition.\" Certain insiders of the Company may acquire shares in the Offering. Any participation by insiders in the Offering would constitute a \"related party transaction\" as defined under Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions (\"MI 61-101\"). However, the Company expects such participation would be exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as the fair market value of the shares subscribed for by the insiders, nor the consideration for the shares paid by such insiders, would not exceed 25% of the Company's market capitalization. Dundee Goodman Merchant Partners, a division of Goodman & Company, Investment Counsel Inc., (the \"Finde...