Thesis Gold Inc (TSX-V:TAU) said it has entered into an agreement with Clarus Securities Inc, as lead agent and sole bookrunner on behalf of a syndicate of agents, in connection with a marketed best efforts private placement of up to approximately C$24.5 million.
The offering will consist of up to 7,407,450 Premium Flow-through (Premium FT) shares at a price of C$2.70 per Premium FT share for gross proceeds of up to C$20,000,115; and up to 1,875,000 Flow-through (FT) shares”) at a price of $2.40 per FT share for gross proceeds of up to $4,500,000.
The Premium FT shares and FT shares issued under the offering will be subject to a four-month hold period in accordance with the policies of the TSX Venture Exchange and applicable securities laws. The company does not expect that the offering will result in the creation of any new control person of the company.
READ: Thesis Gold hits more high-grade gold at the Bonanza Zone in British Columbia
The gross proceeds from the offering will be used by the company to incur eligible Canadian exploration expenses that will qualify as "flow-through mining expenditures" as such terms are defined in the Income Tax Act (Canada) related to the company's projects in Canada.
All qualifying expenditures will be renounced in favour of the subscribers of the Flow-Through shares effective December 31, 2022. The net proceeds from the sale of the shares will be used by the company for working capital and general corporate purposes.
The offering is scheduled to close on or about February 10, 2022, and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals of the TSX Venture Exchange. The securities to be issued will be offered by way of private placement exemptions in all the provinces of Canada.
Thesis Gold is a mineral exploration company focused on proving and developing the resource potential of the 17,832 hectare RanchGold Project located in the Golden Horseshoe area of northern British Columbia, approximately 300 kilometres north of Smithers.
Contact the author at jon.hopkins@proactiveinvestors.com