Snowline Gold Corp said it has completed its previously announced non-brokered private placement for aggregate gross proceeds of approximately C$7 million.
“We are thrilled to have funds in hand for a significant and expanded exploration program in 2022,” said Scott Berdahl, CEO and director of Snowline Gold in a statement.
“This placement puts Snowline in a strong position as we continue to build on the progress made in 2021. We are already working to make 2022 an even more exciting year for Snowline and its shareholders than our inaugural 2021 campaign," he added.
The placement saw the issue of 757,575 flow-through (FT) common shares at a price of C$0.66 per FT Share and 8,783,783 premium flow-through common shares at a price of C$0.74 each. Each FT share and Premium FT share is accompanied by one-half of one common share purchase warrant, with each whole warrant being exercisable for one common share of the company at an exercise price of C$0.75 until December 17, 2023.
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 (Canada), 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 chair, Craig Hart commented: “Importantly, these flow-through shares were acquired by fundamental buyers who appreciate the long-term growth opportunity of our exploration and discovery plan. On behalf of the company, we would like to thank our investors for their continued support.”
An aggregate cash finder’s fee of $11,892.01 was paid to finders in respect of the offering. All securities issued in connection with the offering are subject to a hold period of four months and one day from the closing of the offering, in accordance with applicable Canadian securities laws, expiring on April 18, 2022.
The securities issued under the offering have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and were not to be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.
Snowline Gold is a Yukon Territory-focused gold exploration company with a seven-project portfolio covering over 100,000 hectares. The company is exploring its flagship 72,000 hectares Einarson and Rogue gold projects in the highly prospective yet underexplored Selwyn Basin.
Snowline’s project portfolio sits within the prolific Tintina Gold Province, host to multiple million-ounce-plus gold mines and deposits including Kinross’ Fort Knox mine, Newmont’s Coffee deposit, and Victoria Gold’s Eagle Mine. The company’s first-mover land position provides a unique opportunity for investors to be part of multiple discoveries and the creation of a new gold district.
Contact the author at jon.hopkins@proactiveinvestors.com