Goldshore Resources Inc said it has increased the size of its previously-announced brokered private placement to raise total gross proceeds of up to C$10 million, from the earlier-reported $7 million, and also unveiled the appointment of a new chief financial officer (CFO).
The company said it has entered into an engagement letter with Eventus Capital Corp., as lead agent and sole bookrunner, on its own behalf and on behalf of a syndicate of agents to be formed, in connection with the brokered private placement of flow-through shares (FT share) at a price of $0.65 per FT Share, and premium flow-through shares at a price of $0.76 per Premium FT Share.
The company said it intends to use the proceeds raised from the offering for future exploration work on its Moss Lake gold deposit in northwest Ontario, Canada.
In a statement, Brett Richards, president and chief executive officer of Goldshore commented: "This key financing de-risks the Company well through its 100,000m drill program and near to its completion."
READ: Goldshore Resources hails results of first three holes from 100,000m program at Moss Lake
Goldshore has also granted to the agents an option, exercisable up to 48 hours prior to the closing date of the offering, to sell up to an additional 15% of the offered shares at a price of $0.65 per FT Share and $0.76 per Premium FT Share. Up to 15,384,615 offered shares will be issued under the offering assuming exercise of the agent's option.
The company said it has agreed to pay to the agents a cash commission equal to 6% of the gross proceeds of the offering, of which 3% will be payable in cash and 3% will be payable through the issuance of common shares of the company at a price of $0.65. In addition, it has agreed to issue to the agents compensation warrants of the company exercisable for a period of 24 months, to acquire in aggregate that number of common shares which is equal to 6% of the number of offered shares sold under the offering at an exercise price of $0.65.
The gross proceeds from the issuance of the offered shares will be used for 'Canadian Exploration Expenses' within the meaning of the Income Tax Act (Canada). If the Qualifying Expenditures are reduced by the Canada Revenue Agency, the company will indemnify each subscriber of the offered shares for any additional taxes payable by such subscriber as a result of the company's failure to renounce the Qualifying Expenditures.
The offering is scheduled to close on or about November 23, 2021, and is subject to the receipt of all necessary regulatory and other approvals, including, but not limited to, the listing of the offered shares on the Toronto Venture Exchange and approval of the exchange.
The offered shares will be subject to a hold period of four months and one day from the closing date in accordance with applicable securities laws.
New CFO appointed
Goldshore also announced the appointment of Marlis Yassin as its chief financial officer (CFOO) effective November 1, 2021. Gavin Cooper, who has served as Goldshore's CFO since 2017, will continue to be available to work with the company as a consultant.
Commenting on the new CFO appointment, Goldshore CEO Richards: "We are excited to have Marlis join as CFO, as we have expanded and grown our team quickly from our June 2021 listing, and now well-positioned to complete the next development phase at the Moss Lake Project. I would like to thank Gavin for his time and commitment to getting Goldshore started, and look forward to Marlis joining now as we grow the business."
The company noted that Yassin has over 15 years' experience working with companies in various sectors, including mining, technology, and industrial products. She has held finance management positions at various public companies, including a large industrial products company and mid-tier mining companies.
Yassin gained extensive experience at Deloitte providing reporting, advisory and assurance services to publicly traded companies, primarily in natural resources. She is a CPA, CA and holds a Bachelor of Commerce degree from the University of British Columbia.
Contact Sean at sean@proactiveinvestors.com
--UPDATES with increased private placement size news--