Athena Gold Corporation Closes First Tranche Of Private Placement For Cad $174,500

Rhea-AI Summary

Athena Gold Corporation (OTCQB:AHNR) has successfully closed the first tranche of a non-brokered private placement, raising CAD $174,500 from the issuance of 2,181,250 Units at CAD $0.08 per Unit. Each Unit includes a common share and a warrant allowing purchase at CAD $0.15 within 36 months. An insider purchased 1,181,250 Units for CAD $94,500 in a related party transaction. The proceeds will fund property exploration and general working capital. All securities will have a four-month and one-day hold period in Canada.

Positive

• Raised CAD $174,500 through the first tranche of a private placement.
• Insider participation signifies confidence in the company's potential.

Negative

• The offering may lead to potential dilution for existing shareholders.

NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR FOR DISTRIBUTION IN THE UNITED STATES NEWS WIRE SERVICES

VACAVILLE, CA / ACCESSWIRE / April 14, 2022 / Athena Gold Corporation (OTCQB:AHNR)(CSE:ATHA) ("Athena" or the "Company")is pleased to announce it has closed the first tranche of a non-brokered private placement offering (the "Offering") of up to 6,250,000 units of the Company (each, a "Unit") at a price of CAD $0.08 per Unit for gross proceeds of up to CAD $500,000. Each Unit consists of one common share in the capital stock of the Company and one common share purchase warrant, with each warrant entitling the holder thereof to purchase one common share in the capital stock of the Company at a price of CAD $0.15 at any time on or before the first business day that is 36 months after the date of issuance.

In connection with the closing of the first tranche of the Offering, the Company has issued 2,181,250 Units for gross aggregate proceeds of CAD $174,500. The Company has paid finder's fees on a portion of the first tranche of the Offering consisting of 7% cash and 7% broker warrants, each broker warrant entitling the holder thereof to purchase one common share in the capital stock of the Company at a price of CDN $0.15 at any time on or before the first business day that is 24 months after the date of issuance.

An insider of the Company purchased an aggregate of 1,181,250 Units in the first tranche of the Offering for proceeds of CAD $94,500. This constitutes a related party transactions pursuant to Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Company relied on Sections 5.5(a) and 5.7(1)(a) of MI 61-101 for an exemption from the formal valuation and minority shareholder approval requirements, respectively, of MI 61-101, as, neither the fair market value of the subject matter of, nor the fair market value of the Units purchased by the insider under the first tranche of the Offering exceed 25% of the Company's market capitalization.

The net proceeds from the Offering are expected to be used for property exploration and general working capital. All securities issued in connection with the Offering will be subject to a four month and one day hold period in Canadaand are subject to applicable United States hold periods.

None of the foregoing securities have been and will not be registered under the United States Securities Act of 1933, as amended (the "1933 Act") or any applicable state securities laws and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons (as defined in Regulation S under the 1933 Act) or persons in the United States absent registration or an applicable exemption from such registration requirements. This news release does not constitute an offer to sell or the solicitation of an offer to buy nor will there be any sale of the foregoing securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

About Athena Gold Corporation

Athena is engaged in the business of mineral exploration and the acquisition of mineral property assets. Its objective is to locate and develop economic precious and base metal properties of merit and to conduct its exploration program on the Excelsior Springs Project, located in Esmeralda County, Nevada, approximately 45 miles southwest of Goldfield, Nevada.

For further information about Athena Gold Corporation and our Excelsior Springs Gold project, please visit www.athenagoldcorp.com.

On Behalf of the Board of Directors

John Power
Chief Executive Officer and President

Contact:

Phone: John Power, 707-291-6198
Email: info@athenagoldcorp.com

Forward Looking Statements

This press release contains forward-looking statements and forward-looking information (collectively, "forward-looking statements") within the meaning of applicable Canadian and U.S. securities laws. All statements, other than statements of historical fact, included herein including, without limitation, statements regarding the completion of the Offering, expected use of proceeds from the Offering, future results from exploration, and the anticipated business plans and timing of future activities of the Company, are forward-looking statements. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking statements are typically identified by words such as: "believes", "will", "expects", "anticipates", "intends", "estimates", "plans", "may", "should", "potential", "scheduled", or variations of such words and phrases and similar expressions, which, by their nature, refer to future events or results that may, could, would, might or will occur or be taken or achieved. In making the forward-looking statements in this press release, the Company has applied several material assumptions, including without limitation, that there will be investor interest in future financings, market fundamentals will result in sustained precious metals demand and prices, the receipt of any necessary permits, licenses and regulatory approvals in connection with the future exploration and development of the Company's projects in a timely manner, the availability of financing on suitable terms for the exploration and development of the Company's projects and the Company's ability to comply with environmental, health and safety laws.

The Company cautions investors that any forward-looking statements by the Company are not guarantees of future results or performance, and that actual results may differ materially from those in forward-looking statements as a result of various factors, including, operating and technical difficulties in connection with mineral exploration and development activities, actual results of exploration activities, the estimation or realization of mineral reserves and mineral resources, the inability of the Company to obtain the necessary financing required to conduct its business and affairs, as currently contemplated, the timing and amount of estimated future production, the costs of production, capital expenditures, the costs and timing of the development of new deposits, requirements for additional capital, future prices of precious metals, changes in general economic conditions, changes in the financial markets and in the demand and market price for commodities, lack of investor interest in future financings, accidents, labor disputes and other risks of the mining industry, delays in obtaining governmental approvals, permits or financing or in the completion of development or construction activities, risks relating to epidemics or pandemics such as COVID-19, including the impact of COVID-19 on the Company's business, financial condition and results of operations, changes in laws, regulations and policies affecting mining operations, title disputes, the inability of the Company to obtain any necessary permits, consents, approvals or authorizations, including of the Canadian Securities Exchange, the timing and possible outcome of any pending litigation, environmental issues and liabilities, and other factors and risks that are discussed in the Company's periodic filings with the SEC and disclosed in the final long form prospectus of the Company dated August 31, 2021.

Readers are cautioned not to place undue reliance on forward-looking statements. The Company undertakes no obligation to update any of the forward-looking statements in this press release or incorporated by reference herein, except as otherwise required by law.

SOURCE: Athena Gold Corporation

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FAQ

What was the total amount raised by Athena Gold Corporation in the recent private placement?

Athena Gold Corporation raised a total of CAD $174,500 in the first tranche of its private placement.

How many Units were issued in the first tranche of the private placement by Athena Gold Corporation?

A total of 2,181,250 Units were issued in the first tranche of the private placement.

What is the exercise price of the warrants issued by Athena Gold Corporation in the private placement?

The exercise price of the warrants issued is CAD $0.15.

Who participated in the private placement of Athena Gold Corporation?

An insider of Athena Gold Corporation purchased 1,181,250 Units in the private placement.

What are the intended uses of proceeds from Athena Gold Corporation's private placement?

The proceeds from the private placement will be used for property exploration and general working capital.