Golden Shield Resources (CSE:GSRI, OTCQB:GSRFF) Inc announced that it has entered into an agreement with Canaccord Genuity (TSX:CF, LSE:CF) Corp, in which Canaccord will act as an agent for the company to execute a private placement on a 'best efforts' basis to raise gross proceeds of up to C$3.5 million, through the issuance of up to 20 million Golden Shield Resources (CSE:GSRI, OTCQB:GSRFF) units at a price of C$0.175 per unit.
The gold exploration company said net proceeds from the offering will be used for exploration of its flagship Marudi property, including diamond drilling, aircore drilling, trenching, pitting, hand augering, mapping and sampling, and for general working capital.
Each unit will consist of one company common share plus one-half of one common share purchase warrant, with each warrant entitling the holder to purchase one Golden Shield Resources common share for a period of 24 months following the closing date of the offering at an exercise price of C$0.25 for the 12 month period following the closing date and thereafter the exercise price will increase to C$0.35 for the remaining term of the warrants.
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Golden Shield noted the offering is scheduled to close on or about April 12, 2023, and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the Canadian Securities Exchange (CSE).
It added that the securities issued pursuant to the offering will be subject to a four-month hold period from the closing date.
Golden Shield Resources is a gold exploration company focused on three highly prospective 100%-owned exploration projects in Guyana, South America: Marudi Mountain, Arakaka, and Fish Creek.
Contact Sean at sean@proactiveinvestors.com