Business
Gold79 Announces Closing of Oversubscribed Private Placement Financing Raising $2.2 Million
Ottawa, Ontario--(Newsfile Corp. - April 12, 2021) - Gold79 Mines Ltd. (TSXV: AUU) ("Gold79" o...
About this update from West Point Gold Corp.
[{"type":"text","content":"Gold79 Announces Closing of Oversubscribed Private Placement Financing Raising $2.2 MillionOttawa, Ontario--(Newsfile Corp. - April 12, 2021) - Gold79 Mines Ltd. (TSXV: AUU) (\"Gold79\" or the \"Company\") announces that it has closed its non-brokered private placement financing raising gross proceeds of $2,210,000 with the issuance of a total of 27,625,000 units at $0.08 per unit (the \"Offering\"). Each unit consists of one common share of the Company and one common share purchase warrant. A total of 27,625,000 warrants were issued entitling the holders to purchase one common share of the Company at a price of $0.12 per share until April 9, 2023.Mr. Gary Thompson, Executive Chairman and current CEO stated, \"Completion of this oversubscribed placement has strengthened our balance sheet and sets Gold79 up to proceed with its fully permitted maiden drill program at the Gold Chain Oxide-Gold Project. I am pleased to welcome two new institutional investors to the Company's share registry and thank Company insiders for their continued support and in addition, I note that I now hold, directly and indirectly, 7,342,000 shares as the largest single shareholder of Gold79 which represents 6.2% of the basic shares outstanding and 9.4% on a partially-diluted basis.\"In connection with the Offering, the Company has paid eligible finders cash commissions in the amount of $53,700 and an aggregate of 671,250 finder warrants (\"Finder Warrants\"). Each Finder Warrant entitles the finder to acquire one common share at an exercise price of $0.08 and is exercisable until April 9, 2023.The Offering is subject to final approval of the TSX Venture Exchange. All securities issued under the Offering are subject to a statutory hold period until August 10, 2021.Officers and directors of the Company including Gary Thompson, John McNeice and Paul Carrêlo participated in the private placement and acquired 4,068,500 units for $325,480. The participation of these insiders in the private placement constitutes a Related Party Transaction within the meaning of Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions (\"MI 61-101\"). The board of directors of the Company, with Messrs. Thompson and Carrêlo abstaining, determined that the transaction is exempt from the formal valuation and minority shareholder approv...