Solstice Gold Corp has said that in response to strong investor demand it has upsized its previously announced non-brokered private placement to gross proceeds of a minimum of $3 million, up from the $1.1 million sought initially, and has amended the offering terms.
Participation continues to be led by members of the board of directors, the management team, and a new institutional investor, the company said.
The new offering consists of Hard Dollar (HD) units at a price of $0.12 per HD unit, each comprised of one common share of the company and one warrant exercisable for one common share at $0.17 each for 18 months from the closing date; and National Flow-Through (NFT) units at a price of $0.135 per NFT unit, each comprised of one common share qualifying as a flow-through (FT) share for purposes of the Income Tax Act (Canada) and a half warrant on the same terms as the warrants in the HD units. The warrants comprised in the NFT units do not qualify as FT shares.
READ: Solstice Gold to raise $1.1 million from flow-through share and unit financing
The gross proceeds of the offering from the HD units will be used for general corporate purposes and working capital; from the FT shares comprised in the NFT units will be used to fund exploration programs qualifying as 'Canadian Exploration Expenses' and 'flow-through mining expenditures' at the company's mining projects in Ontario; and from the warrants comprised in both the HD units and the NFT units will be used for general corporate purposes and working capital.
The closing of the offering is still anticipated to occur on or before August 19, 2022. The offering remains subject to the approval of the TSX Venture Exchange.
The securities have not been and will not be registered under the United States Act of 1933, as amended or any state securities laws and may not be offered or sold within the United States or to US Persons (as such term is defined in Regulation S under the US Securities Act) unless registered under the US.
Solstice Gold is an exploration company with quality, district-scale gold projects in established mining regions of Canada. Its 180 square kilometre (km2 ) Red Lake Extension (RLX) and New Frontier projects are located at the northwestern extension of the prolific Red Lake Camp in Ontario and approximately 45 km from the Red Lake Mine Complex owned by Evolution Mining. The Company is funded for phase one drilling at RLX.
The company's newly formed 322 km2 Atikokan Gold Project is approximately 23 km from the Hammond Reef Gold Project owned by Agnico Eagle Mines Limited and is fully funded for a robust field program in 2022. Its Qaiqtuq Gold Project which covers 886 km2 with certain other rights covering an adjacent 683 km2, hosts a 10 km2 high-grade gold boulder field, is fully permitted and hosts multiple drill-ready targets. Qaiqtuq is located in Nunavut, only 26 km from Rankin Inlet and approximately 7 km from the Meliadine Gold Mine owned by Agnico Eagle Mines Limited.
An extensive gold and battery metal royalty and property portfolio of over 80 assets was purchased in October 2021. Approximately $1.2 million in value and two new royalties have been generated since the acquisition.
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