Idaho Champion (CSE:ITKO, OTCQB:GLDRF) has said it is arranging a private placement for which it anticipates gross proceeds of up to $500,000.
The offering will be for up to 3,333,333 flow-through (FT) shares at a price of $0.06 per each, and up to 4,285,714 Québec Flow-Through (QFT) shares at a price of $0.07 each. The FT Shares and Québec FT Shares will qualify as "flow-through shares" within the meaning of subsection 66(15) of the Income Tax Act (Canada).
The gross proceeds from the issuance of the FT shares and QFT shares will be used for Canadian exploration expenses and will qualify as "flow-through mining expenditures", as defined in subsection 127(9) of the Income Tax Act (Canada) and under section 359.1 of the Taxation Act (Québec), which will be incurred on or before December 31, 2023 and renounced to the subscribers with an effective date no later than December 31, 2022 in an aggregate amount not less than the gross proceeds raised from the offering, as the case may be.
READ: Idaho Champion completes fall exploration on its Twin Peaks cobalt project in Idaho
In addition, with respect to Québec resident subscribers of Québec FT Shares and who are eligible individuals under the Taxation Act (Québec), the Canadian exploration expenses will also qualify for inclusion in the "exploration base relating to certain Québec exploration expenses" within the meaning of section 726.4.10 of the Taxation Act (Québec) and for inclusion in the "exploration base relating to certain Québec surface mining expenses or oil and gas exploration expenses" within the meaning of section 726.4.17.2 of the Taxation Act (Québec).
The participation by directors of the company in the financing constitutes a "related party transaction" under Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions.
In accordance with applicable Canadian securities laws, all securities issued under the private placement will be legended with a hold period of four months and one day from the date of issuance.
In connection with the offering, the company will pay finder's fees of up to 5% of the gross proceeds of the offering.
Completion of the private placement remains subject to the receipt of all necessary regulatory approvals, including approval of the Canadian Securities Exchange.
Idaho Champion Gold Mines Corp is a discovery-focused exploration company that is committed to advancing its highly prospective cobalt properties located in Idaho, United States and lithium properties in Quebec, Canada.
In addition, the company owns the Baner gold project in Idaho County and the Champagne polymetallic project in Butte County near Arco.
Contact the author at jon.hopkins@proactiveinvestors.com