Golden Shield Resources (CSE:GSRI) Corp has announced a brokered private placement to raise C$6 million for exploration, working capital and general corporate purposes.
The company said Canaccord Genuity (TSX:CF, LSE:CF) Corp will act as agent on a 'best efforts' agency basis for the private placement of 10,909,090 units at a price of C$0.55 each.
It added that in light of the offering, it will no longer proceed with the non-brokered private placement announced on June 1, 2022.
READ: Golden Shield Resources announces non-brokered private placement to raise up to C$4.4M
Golden Shield said each unit will consist of one common share in the company and one-half of one common share purchase warrant. Each warrant will entitle the holder to purchase one common share, at a price of C$1.00, for a period of 24 months following the closing date of the offering.
The warrants will be subject to an accelerated expiry date, which comes into effect if the trading price of the company's common shares on the Canadian Securities Exchange (CSE) close at or above C$1.10 per common share for any five days over any period of seven consecutive trading days, it said.
If that event occurs, the company said it will give an expiry acceleration notice to warrant holders and the expiry date of the warrants will be deemed to be 21 days from the date of the notice, it added.
Golden Shield said Canaccord has the option to sell up to an additional 1,636,364 units at the offer price, exercisable in whole or in part, at any time up to 48 hours prior to the closing of the offering to cover over-allotments, if any.
If the over-allotment option is exercised in full, an additional approximately C$900,000 in gross proceeds will be raised, for a total aggregate gross proceeds of C$6,900,000, the company said.
The units will be offered for sale under applicable exemptions from the prospectus requirements in Canada, as well as in the United States under available exemptions from the registration requirements of the United States Securities Act of 1933, and in other jurisdictions, provided it is understood that no prospectus filing or comparable obligation arises in these jurisdictions.
The offering is scheduled to close on or about June 28, 2022, and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the CSE.
Vancouver-based Golden Shield is exploring three high-grade gold projects in Guyana: Marudi Mountain, Arakaka, and Fish Creek.
Contact the author at jon.hopkins@proactiveinvestors.com