MAS Gold Corp (TSX-V:MAS, OTCQB:MSGCF) has said it will be conducting a rights offering on a one-for-one basis for each common share held which will be available in all provinces and territories of Canada, as well as other eligible jurisdictions.
Each right will entitle the holder to subscribe to one common share of the company at a price of C$0.01 per share.
A maximum of 204,534,458 common shares will be issued under the offering. If all the rights issued are validly exercised, the offering will raise gross proceeds of approximately $2,045,344.58.
The company said the net proceeds will be used for general corporate purposes, including the repayment of indebtedness incurred while conducting exploration programs, preparing the National Instrument 43-101 compliant 'Technical Report on the 2023 Mineral Resource Update for the Preview SW Project, La Ronge Gold Belt, Saskatchewan, Canada', paying claims maintenance fees and general corporate expenditures.
MAS Gold noted that certain directors and officers of the company intend to exercise their rights to purchase common shares under the offering.
The rights offering will expire on September 5, 2023, at 5.00pm Toronto time. Shareholders who fully exercise their rights will have the opportunity to subscribe for additional common shares if not all shares have been subscribed for under the basic subscription privilege.
The company has also entered into a stand-by commitment agreement with Eros Resources Corp, ensuring a minimum of 169,763,600 common shares will be issued if not subscribed for by shareholders.
The common shares are expected to begin trading on the TSX Venture Exchange (TSXV) on an ex-rights basis starting June 29, 2023.
MAS Gold is a Canadian mineral exploration company focused on advancing its gold exploration projects in the La Ronge Gold Belt of Saskatchewan. With multiple properties in the region, the company aims to unlock the full potential of these prospective areas.
Contact the author at jon.hopkins@proactiveinvestors.com