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Gatling Exploration closes first tranche of its previously announced private placement 

Published: 15:25 12 Jul 2021 BST

Gatling Exploration -
The net proceeds from the issuance of the units will be used for exploration expenditures and for general working capital

Gatling Exploration Inc. (CVE:GTR) said it has closed the first tranche of its private placement that it first announced on June 11, 2021.

The company said it issued 2,050,000 units at a price of $0.40 per unit for total gross proceeds of $820,000 and 3,347,200 flow-through (FT) shares at $0.45 per FT share for total gross proceeds of $1,506,240.

Each unit consists of one common share and one-half of one transferable share purchase warrant, with each whole warrant exercisable into one additional common share at a price of $0.60 per share for a period of two years from the date of issue.

READ: Gatling Exploration poised for drilling at Kir Vit prospect in third quarter after receiving permit

Gatling said the gross proceeds from the issuance of the FT shares will be used for Canadian Exploration Expenses, and will qualify as "flow-through mining expenditures" and as "eligible Ontario exploration expenditures" which will be renounced to the subscribers with an effective date no later than December 31, 2021, in an aggregate amount not less than the gross proceeds raised from the issue of the FT Shares.

If the Qualifying Expenditures are reduced by the Canada Revenue Agency, the company will indemnify each FT share subscriber for any additional taxes payable by such subscriber as a result of the company's failure to renounce the Qualifying Expenditures as agreed.

The net proceeds from the issuance of the units will be used for exploration expenditures and for general working capital.

For its efforts in finding certain placees, the company paid a total of $37,800 and issued 94,500 share purchase warrants in finders' fees. The warrants issued to the finders have the same terms as the warrants issued under the unit offering.

All securities issued under the placement are subject to a four-month hold period from the date of issue in accordance with applicable securities laws.

Gatling also advised that further to its news release of June 3, 2021, it will be issuing 150,000 common shares to 2362516 Ontario Inc., of which Albert Contardi is the sole insider, in respect of the Ccmpany's acquisition of a 25% interest in mining leases on the western portion of the Larder property known as the Swansea zone.

Contact the author at jon.hopkins@proactiveinvestors.com