Falcon Gold Corp (TSX-V:FG, OTC:FGLDF) has applied to the TSX Venture Exchange for the approval of a warrant exercise incentive program.
The proposed program would work in conjunction with a private placement completed in July that offered 5,750,000 units priced at $0.08 each. In addition to one common share, each unit contained one share purchase warrant valid for three years and priced at $0.12.
As such, Falcon Gold has 5,750,000 placement warrants priced at $0.12 each and expiring July 13, 2023.
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Under the proposed incentive program, if the placement warrants are exercised prior to 4 pm PST on the 30th day after TSX Venture Exchange approval, the holder will receive one additional warrant (an Incentive Warrant) in consideration of the early exercise of each Placement Warrant.
According to the statement: “Each Incentive Warrant will be exercisable to acquire one common share of the company at a price of $0.18 per share for a period of one year from the date of issuance. The Company believes this will give existing Placement Warrant holders the right incentive to exercise their Placement Warrants.”
If a warrant holder decides to not participate in the incentive program, the holder may exercise the Placement Warrants on their original terms or allow them to expire unexercised after the incentive period.
Falcon gold is currently advancing its flagship project the Central Canada Gold mine in Ontario.
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