HighGold Mining Inc (TSX-V:HIGH, OTCQX:HGGOF) said it has closed its previously announced upsized non-brokered private placement which was oversubscribed, issuing a total of 14,029,243 common shares at a price of $0.66 each for aggregate gross proceeds of $9,259,300.
In connection with the offering, an existing strategic shareholder of the company exercised their participation rights to maintain their 9.9% interest and subscribed for 1,420,000 shares at $0.66 each for proceeds of $937,200. The $9,259,300 in aggregate gross proceeds of the offering is inclusive of the $937,200 from the strategic shareholder.
"With the closing of the financing, HighGold has $16 million in working capital, placing us in a strong position to advance our core asset, the Johnson Tract Gold Project in Alaska," commented HighGold president & CEO Darwin Green in a statement.
"We are very pleased to welcome new shareholders to HighGold's registry and equally appreciative of the support of existing major shareholders that participated in the financing. HighGold now looks forward to putting these funds to work as we finalize plans for our 2023 exploration program,” he added.
The company said it intends to use the net proceeds from the offering for exploration and development initiatives in connection with the company's Johnson Tract project and for working capital and general corporate purposes.
Certain insiders of the company participated in the offering and subscribed for an aggregate of 133,052 shares for gross proceeds of $87,814.
A total of $28,263 in finders' fees are payable as a cash commission to arm's length finders in connection with the closing of the offering.
The securities issued in connection with the offering are subject to a statutory four-month and one-day hold period in Canada expiring August 12, 2023. The closing of the offering is subject to final acceptance of the TSX Venture Exchange.
HighGold is a mineral exploration company focused on high-grade gold projects located in North America. HighGold's 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