Snowline Gold Corp. (CSE:SGD) said it plans to raise up to C$5 million through a non-brokered private placement to fund further exploration on its Yukon Territory mineral properties.
The gold exploration company said the placement will include the issue up to 757,575 flow-through (FT) common shares at C$0.66 each for gross proceeds of up to C$500,000, and up to 6,081,081 premium FT common shares at C$0.74 each for gross proceeds of up to C$4.5 million.
Each flow-through share and premium flow-through share will be accompanied by one-half of one common share purchase warrant, with each full warrant exercisable for one common share at an exercise price of C$0.75 for two years.
READ: Snowline Gold hits more high-grade gold mineralization with drilling at Jupiter zone at Einarson gold project
“The gross proceeds from the issue and sale of the FT shares and the premium FT shares will be used to support advancement of exploration on the company's Yukon Territory mineral properties, which will qualify as 'Canadian Exploration Expenses' and 'flow-through mining expenditures', as those terms are defined in the Income Tax Act, which will be renounced to the initial purchasers of the FT shares and the premium FT shares with an effective date no later than December 31, 2021,” Snowline Gold said in a statement.
The company said the closing of the offering will occur on or around December 15, 2021.
Snowline Gold is a Yukon Territory-focused gold exploration company with a seven-project portfolio covering more than 90,000 hectares.
It is exploring its flagship 72,000-hectare Einarson and Rogue gold projects in the highly prospective yet underexplored Selwyn Basin.
Contact the author at stephen.gunnion@proactiveinvestors.com