Gatling Exploration (TSX-V:GTR, OTCQB:GATGF) Inc. said it has arranged a private placement to raise gross proceeds of up to $2.5 million.
The offering will consist of a combination of 5,882,352 common shares of the company issued on a flow-through basis (FT shares) at a price of $0.34 per FT Share; and 1,562,500 units of the company at a price of $0.32 per unit.
Each unit will consist of one common share and one-half of one transferable share purchase warrant, each whole warrant exercisable into one additional common share at a price of $0.50 per share for a period of two years from the date of issue.
READ: Gatling Exploration reveals a more than 1.3M ounce gold resource its Larder project in Ontario
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', as defined in subsection 127(9) of the Income Tax Act (Canada).
These expenses 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, and, 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.
All offered securities will be subject to a four-month hold period from the date of issue in accordance with applicable securities laws. The offering is subject to acceptance of the TSX Venture Exchange.
The company said finders' fees may be payable in whole or on part of the offering under the policies of the TSX Venture Exchange.
Gatling recently announced a new National Instrument (NI) 43-101 compliant global mineral resource estimate for its 100%-owned Larder gold project located in Ontario’s Abitibi greenstone belt, which showed 388,000 ounces of gold in the Indicated category plus 933,000 Inferred gold ounces at an average grade of 2.4 grams per tonne (g/t) and 4.2 g/t, respectively.
Contact the author at jon.hopkins@proactiveinvestors.com