Gander Gold Corporation revealed that it has closed its over-subscribed non-brokered private placement with strategic investors for total gross proceeds of nearly $4 million.
The Vancouver, British Columbia-based company said the net proceeds from the private placement will be used to fund ongoing exploration activities at Gander Gold's properties in Newfoundland and for general working capital.
Gander Gold said no warrants were attached with the financing which was completed at a hard dollar price of 27 cents per share, a flow-through price of 31 cents per share, and a charity flow-through price of $0.38 per share.
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In a statement, Gander Gold CEO Mark Scott said: "Just six months into its life as a publicly traded company, Gander Gold is on an exciting path of discovery at two of its major property packages - Gander North and Mount Peyton, with earlier-stage opportunities advancing through the pipeline.”
“This over-subscribed private placement is a testament to the work our teams are doing on the ground. We continue to have a very sound share structure with no warrant overhang," he added.
The exploration-stage resource company also said the securities issued included 5.07 million common shares at $0.27 per share for aggregate gross proceeds of $1,368,069.75; 4.83 million flow-through shares at $0.31 per flow-through share for aggregate gross proceeds of $1,498,367.02; and 2.98 million charitable flow-through shares at $0.38 per charitable flow-through share for gross proceeds of nearly $1,133,525.56.
In connection with the private placement, Gander paid finder's fees totaling $228,542 and 701,742 finder's warrants to Haywood Securities Inc, Canaccord Genuity (TSX:CF, LSE:CF) Corp, PI Financial, Research Capital Corporation, Aligned Capital Partners Inc and Clarus Securities Inc.
The finder's warrants are non-transferable and exercisable at prices of $0.27, $0.31 and $0.38 per share for a period of 12 months from the date of issue.
All securities issued in the private placement are subject to a hold period of four months and one day following the closing date of the private placement, expiring on January 27, 2023.
Newfoundland, All the Time". Gander Gold is one of Newfoundland’s largest claimholders targeting new high-grade gold discoveries with a current focus on the large Gander North and Mount Peyton projects where there has been very promising early exploration success.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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