Golden Shield Resources (CSE:GSRI) Corp said it has amended the terms of its previously announced private placement and will now raise up to about C$2 million by issuing up to 4,651,162 company units at a price of C$0.43 per unit.
The Guyana-focused gold explorer said net proceeds from the offering will be used to advance exploration on the company's properties in Guyana, as well as for working capital and general corporate purposes.
Each unit of the amended private placement will consist of one company common share plus one common share purchase warrant, with each warrant entitling the holder to purchase one Golden Shield common share at a price of C$0.60 for a period of 24 months following the closing date of the offering.
READ: Golden Shield Resources announces C$6M brokered private placement for exploration and working capital
As well, the company noted that it has agreed to grant the agent an option to sell up to an additional 697,674 units at the offering price, exercisable in whole or in part, at any time up to 48 hours before the closing of the offering to cover over-allotments, if any.
It added that if the over-allotment option is exercised in full, about an additional C$300,000 in gross proceeds will be raised pursuant to the offering and the total gross proceeds of the offering will be about C$2.3 million.
The offering is scheduled to close on or about July 5, 2022 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the Canadian Securities Exchange.
Vancouver-based Golden Shield is exploring three high-grade gold projects in Guyana: Marudi Mountain, Arakaka, and Fish Creek.
Contact Sean at sean@proactiveinvestors.com