Goldshore Resources Inc (TSX-V:GSHR, OTCQB:GSHRF) has announced the closing of its private placement for aggregate gross proceeds of $10 million.
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.
"I am very pleased in closing this financing, as we continue to illustrate through our results, the size, scale and potential of the Moss Lake Project,” president and CEO Brett Richards said in a statement. “This new capital will advance our understanding of the size of the resource, taking us to resource estimation update and preliminary economic update planned to be completed in 1Q 2023. This is truly an exciting project, as the market has now supported us for total capital raisings of almost $50 million since the inception of the transaction with Wesdome Gold Mines in January 2021."
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The offering was comprised of 6,460,686 common share units at $0.50 per unit, 9,616,095 flow-through units at $0.60 per flow-through unit and 1,408,451 charity flow-through units at $0.71 per charity flow-through unit.
Each unit, flow-through unit and charity flow-through unit is comprised of one common share and one-half common share purchase warrant, with each whole warrant entitling the holder to acquire an additional common share at an exercise price of $0.75 for 24 months, subject to acceleration if the company’s shares trade above $1.10 on the TSX Venture Exchange for 20 consecutive days.
Goldshore noted that the offering was led by Eventus Capital Corp and Gravitas Securities Inc, as co-lead agents and joint bookrunners on behalf of a syndicate, including Laurentian Bank Securities Inc.
The company paid the agents a cash commission of $577,050 and issued them a total of 1,003,814 compensation warrants, exercisable for 24 months.
Goldshore is an emerging junior gold development company and owns the Moss Lake Gold Project located in Ontario. The project is host to the Moss Gold Deposit, which contains historic Indicated Mineral Resources of 1.4 million ounces of gold at 1.1 g/t gold and historic Inferred Mineral Resources of 1.8 million ounces gold at 0.98 g/t gold.
Contact the author at stephen.gunnion@proactiveinvestors.com