MAS Gold Corp. (TSX-V:MAS) has announced the successful completion of its early warrant exercise incentive program, providing aggregate gross proceeds of C$2,565,199.60.
The company said a total of 23,517,353 common shares of the company were issued upon the exercise of 23,517,353 previously outstanding share purchase warrants. For every two outstanding warrants that were exercised prior to 5.00pm (CST) on September 16, 2021, the holders received the two common shares to which they were otherwise entitled and one additional incentive warrant entitling the holder to acquire an additional common share at a price of $0.20 per share until 5.00pm CST on October 12, 2024, subject to an early expiry option. A total of 11,758,672 incentive warrants were issued.
MAS Gold said it intends to use the net proceeds to continue building on the string of recent successful drill programs at its Greywacke North and North Lake gold deposits located in Saskatchewan's highly prospective La Ronge Gold Belt.
The company plans to continue drill programs on its Preview-North and Greywacke Lake properties and the recently acquired former Contact Lake gold mine property to upgrade and expand the resources. It also intends to complete further drilling and surface geological exploration work on its other areas within the Preview-North Property, including the Point Deposit and Joe Prospect. A portion of the proceeds will be used for ongoing environmental baseline studies, working capital requirements and other general corporate purposes, MAS Gold added.
READ: MAS Gold acquires 100% interest in historical producer Contact Lake Gold Mine in Saskatchewan
MAS Gold said it received C$1,180,785 from early warrant exercise incentive program participants who elected to pay an increased exercise price equal to the original exercise price of the outstanding warrants plus $0.02 per underlying share in order to receive two flow-through common shares that will each qualify as a flow-through (FT) share in substitution for the two non-flow-through common shares underlying the outstanding warrants.
The net proceeds received by MAS Gold from the issuance of the FT Shares will be used to incur eligible "Canadian exploration expenses'' (CEE) that are "flow-through mining expenditures" - as defined in the Income Tax Act (Canada)). The company will renounce such CEE to the participants receiving FT Shares with an effective date of no later than December 31, 2021.
For those holders of outstanding warrants who chose not to participate in the early warrant exercise incentive program, the applicable outstanding warrants will continue to be exercisable for common shares on the same terms that previously existed.
The incentive warrants being issued are subject to a restricted resale period ending February 13, 2022. The early warrant exercise incentive program is subject to the final acceptance of the Toronto Venture Exchange.
MAS Gold also confirmed that the non-brokered private placement it announced on October 4, 2021, has closed. In connection with the private placement the company issued 350,000 common shares for proceeds of $36,750, to be used for working capital requirements and other general corporate purposes. The common shares issued via the placement are subject to a statutory four-month and one-day hold period.
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