Business
Viva Gold Announces Closing of C$2.1 Million Private Placement Offering
Vancouver, BC - TheNewswire - March 24, 2023 - Viva Gold Corp. ("Viva Gold" or the “Company”) (TSXV:VAU) is pleased to announce that it has completed the non-br
About this update from Viva Gold Corp
[{"type":"text","content":"Vancouver, BC - TheNewswire - March 24, 2023 - Viva Gold Corp. (\"Viva Gold\" or the “Company”) (TSXV:VAU) is pleased to announce that it has completed the non-brokered private placement (the \"Offering\") described in its news release of February 27, 2023. In connection with the closing of the Offering, the Company issued an aggregate of 14,925,731 units (the \"Units\") at a price of CDN$0.14 per Unit for gross proceeds of CDN$2,089,602. Each Unit consists of one common share in the capital of the Company (a “Share”) and one whole non-transferable common share purchase warrant (a “Warrant”). Each whole Warrant is exercisable to acquire one Share at an exercise price of CDN$0.23 per Share until March 24, 2026 which is 36 months from the date of issuance. Viva Gold plans to allocate the net proceeds of the Offering principally towards drilling operations and completion of additional technical and environmental baseline studies at its Tonopah Gold Project (“Tonopah”), and secondarily for general working capital purposes. “This financing will allow Viva to rapidly commence drilling at Tonopah with a program designed to follow up on our successful 2022 drilling programs. Both infill and step out drilling will be conducted with a focus on both increasing and upgrading the existing gold resource base. This funding will also allow us to move forward with our environmental baseline study programs at the site and complete an updated resource estimate and preliminary economic assessment for the project,” stated James Hesketh, President and CEO. Insiders of the Company acquired an aggregate of 7,224,302 Units in the Offering, which participation constituted a \"related party transaction\" as defined under Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions (“MI 61-101”). Such participation is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as neither the fair market value of the Units acquired by the insiders, nor the consideration for the Units paid by such insiders, exceed 25% of the Company's market capitalization. As required by MI 61-101, the Company advises that it expects to file a material change report relating to the Offering less than 21 days before completion of the Offering, which is necessary to complete the Offering in an expeditious mann...