Idaho Champion Gold Mines of Canada Inc (CSE:ITKO, OTCQB:GLDRF) said it has closed the first tranche of its recently announced private placement offering, issuing 10,625,500 Quebec flow-through shares for gross proceeds of $743,785.
The non-brokered private placement offering is for a total of up to 3,333,333 flow-through (FT) shares at a price of 6 cents per FT share and up to 4,285,714 Quebec FT shares at a price of 7 cents per Quebec FT share.
The gross proceeds from the issuance of the FT shares and Quebec FT shares will be used for Canadian exploration expenses and will qualify as flow-through mining expenditures, as defined in Subsection 127(9) of the Income Tax Act (Canada) and under Section 359.1 of the Taxation Act (Quebec), which will be incurred on or before December 31, 2023, and renounced to the subscribers with an effective date no later than December 31, 2022.
READ: Idaho Champion completes fall exploration on its Twin Peaks cobalt project in Idaho
In addition, with respect to Quebec resident subscribers of Quebec FT shares and who are eligible individuals under the Taxation Act (Quebec), the Canadian exploration expenses will also qualify for inclusion in the exploration base relating to certain Quebec exploration expenses within the meaning of Section 726.4.10 of the Taxation Act (Quebec) and for inclusion in the exploration base relating to certain Quebec surface mining expenses or oil and gas exploration expenses within the meaning of Section 726.4.17.2 of the Taxation Act (Quebec).
In connection with the closing of the first tranche, the company paid $37,189 eligible cash finders' fees of the gross proceeds of the offering.
In accordance with applicable Canadian securities laws, all securities issued under the private placement with be legended with a hold period of four months and one day from the date of issuance.
Completion of the private placement remains subject to the receipt of all necessary regulatory approvals, including approval of the Canadian Securities Exchange.
Idaho Champion is a discovery-focused exploration company that is committed to advancing its highly prospective cobalt properties located in Idaho, United States, and lithium properties in Quebec, Canada. In addition, the company owns the Baner gold project in Idaho county and the Champagne polymetallic project in Butte county near Arco.
Contact the author at jon.hopkins@proactiveinvestors.com