Snowline Gold Corp. (CSE:SGD) has said it will raise as much as C$7 million, up from C$5 million, from a non-brokered private placement after the offer was over-subscribed.
The gold exploration company said the placement will now include up to 8,783,783 premium flow-through (FT) common shares at C$0.74 each for gross proceeds of up to C$6.5 million. The number of flow-through common shares remains at a maximum of 757,575 shares at C$0.66 each for gross proceeds of up to C$500,000.
Each premium flow-through share and 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.
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 100,000 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