HighGold Mining Inc (TSX-V:HIGH, OTCQX:HGGOF) has said it intends to raise gross proceeds of up to C$7 million in a non-brokered private placement financing of up to 10,606,060 common shares of the company at a price of $0.66 each.
The net proceeds of the offering are expected to be used for exploration and development initiatives in connection with the company's Johnson Tract project and for working capital and general corporate purposes.
The company said it may pay finder's fees on all or a portion of the offering.
READ: HighGold Mining enters agreement for plan of arrangement to spin-out Canadian properties
The offering is expected to close on or about April 5, 2023, or such other date as may be determined by the company and is subject to certain conditions including, but not limited to, the receipt of all necessary corporate and regulatory approvals, including the approval of the TSX Venture Exchange (TSXV) and applicable securities regulatory authorities.
All securities issued in connection with the offering will be subject to a standard four-month and a day hold period in Canada.
None of the foregoing securities have been and will not be registered under the United States Securities Act of 1933, as amended or any applicable state securities laws and may not be offered or sold in the United States or to, or for the account or benefit of, US persons (as defined in Regulation S under the 1933 Act) or persons in the United States absent registration or an applicable exemption from such registration requirements.
Update on Onyx Gold Corp Spin-Out
HighGold also said it is continuing to progress with the proposed spin-out of its Ontario and Yukon exploration properties into Onyx Gold Corp, and currently anticipates the meeting of HighGold's shareholders to approve the plan of arrangement (PoA) to be held at the end of May 2023.
Following the closing of the offering and the shareholder meeting anticipated to be held in late May for the purpose of the spin-out, the company will determine the effective date of the spin-out and, if applicable, any record date and distribution date.
In accordance with the PoA, shareholders of HighGold will be eligible to receive one common share in the capital of Onyx for every four shares held in the capital of HighGold upon completion of the spin-out.
HighGold is a mineral exploration company focused on high-grade gold projects located in North America. Its flagship asset is the high-grade Johnson Tract Gold-Zinc-Copper Project located in accessible Southcentral Alaska, USA.
The company also controls one of the largest junior gold miner land positions in the Timmins, Ontario gold camp. This includes the Munro-Croesus Gold property, which is renowned for its high-grade mineralization, and the large Golden Mile and Timmins South properties. HighGold also has 100% ownership of a group of properties in Yukon's emerging new Selwyn Basin Reduced Intrusive Related Gold district.
Contact the author at jon.hopkins@proactiveinvestors.com