MAS Gold Corp (TSX-V:MAS, OTCQB:MSGCF) said it has the closed the first tranche of its previously-announced, non-brokered private placement financing, raising C$1.73 million after issuing 21,625,000 company units at a price of $0.08 each.
The mineral exploration company said it intends to use the net proceeds from the offering to assist in advancing its portfolio of prospective projects, as well as for working capital requirements and other general corporate purposes.
“I am extremely pleased that we have been able to close the first tranche of the financing over our expected minimum, largely due to the investment of the company's management, insiders, and board members taking up the majority of this tranche,” MAS Gold CEO Jim Engdahl said in a statement.
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“Additional results from our winter drill program are expected in the near term which we believe that will also assist the company in reaching its exploration and development objectives,” Engdahl added.
Each unit of the private placement consisted of one company common share plus one common share purchase warrant, with each warrant exercisable to acquire one MAS Gold common share at a price of $0.20 for 24 months after the closing of the private placement.
The warrants are subject to early expiry if, beginning four months after the closing of the private placement, the daily volume weighted average trading price of MAS Gold common shares exceeds $0.30 for ten consecutive trading days, according to the company.
MAS Gold noted it is expecting to close the second and final tranche of the private placement sometime in June 2022.
The company added that it will pay finder's fees on a portion of the offering consisting of 7% in cash and 7% in warrants.
The private placement is subject to the final acceptance of the Toronto Venture Exchange and all securities issued via the offering are subject to a statutory four-month-and-one-day hold period, MAS Gold said.
MAS Gold is a Canadian mineral exploration company focused on exploration projects in the prospective La Ronge Greenstone Belt of Saskatchewan. In the belt, MAS Gold operates the Greywacke, North Lake and Point advanced gold projects, each hosting drill-intercepted zones of gold mineralization.
Contact Sean at sean@proactiveinvestors.com