MAS Gold Corp (TSX-V:MAS, OTCQB:MSGCF) has announced a non-brokered private placement for gross proceeds of up to C$1,500,000.
The company said it intends to use the net proceeds of the offering to fund the exploration and advancement of the company's projects in the La Ronge Greenstone Belt in Saskatchewan as well as working capital and other general corporate purposes.
The proceeds will be raised from the sale of up to 11,111,111 units of the company at a price of C$0.045 each for gross proceeds of up to C$500,000 and from the sale of up to 20,000,000 flow-through (FT) units at a price of C$0.05 each for gross proceeds of up to C$1,000,000.
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Each unit will consist of one common share of the company and one common share purchase warrant. Each FT unit will consist of one common share to be issued as a "flow-through share" within the meaning of the Income Tax Act (Canada) and one warrant. Each warrant will entitle the holder to purchase one common share at a price of C$0.08 for a period of 24 months following the distribution date of the offered security.
Proceeds from the sale of FT shares will be used to incur "Canadian exploration expenses" as defined in subsection 66.1(6) of the Income Tax Act and "flow through mining expenditures" as defined in subsection 127(9) of the Income Tax Act. Such proceeds will be renounced to the subscribers with an effective date not later than December 31, 2022, in the aggregate amount of not less than the total amount of gross proceeds raised from the issue of FT shares.
Red Cloud Securities will be acting as a finder for the offering on behalf of the company. The company said it will pay Red Cloud a cash commission of 6.0% of the gross proceeds from offered securities sold to purchasers that are sourced by the broker. In addition, the company will issue to Red Cloud warrants exercisable for a period of 24 months following the closing date, to acquire in aggregate that number of common shares of the company which is equal to 6.0% of the total number of offered securities sold to purchasers that were sourced by Red Cloud at an exercise price equal to C$0.045 per share.
The closing of the offering will be subject to certain conditions including, but not limited to, receipt of all necessary approvals including the approval of the TSXV. The common shares issuable from the offering will be subject to a statutory four-month restricted resale period.
MAS Gold is a Canadian mineral exploration company focused on advancing its gold exploration projects in the prospective La Ronge Gold Belt of Saskatchewan.
The company operates four properties in the belt, including the Preview-North, Greywacke Lake, Elizabeth Lake and Henry Lake Properties totalling 35,175.6 hectares (86,920.8 acres). These properties extend along the geologically prospective La Ronge, Kisseynew and Glennie Domains that make up the La Ronge Gold Belt in north-central Saskatchewan.
MAS Gold currently has five advanced deposits including the North Lake, Greywacke North, Preview SW, Contact Lake, and Point gold deposits.
Contact the author at jon.hopkins@proactiveinvestors.com