Canagold Announces Closing of Fully Subscribed Rights Offering
Canagold Resources Ltd. (TSX: CCM, OTC-QB: CRCUF) successfully closed its rights offering on December 9, 2022, issuing 25,277,221 common shares at $0.175 each, raising gross proceeds of $4,423,514. The offering saw a 55% subscription rate, with substantial participation from existing shareholders. Notably, Sun Valley Investments AG acquired an additional 20,352,577 shares, raising its ownership to 40.06%. The proceeds will primarily be utilized for advancing the New Polaris Project, with repayments made to Sun Valley for prior loans and fees.
- Raised $4,423,514 through rights offering.
- 55% subscription rate indicates strong shareholder support.
- Sun Valley holds significant investment, increasing ownership to 40.06%.
- Proceeds allocated to advancing New Polaris Project.
- None.
The Company received subscriptions from existing shareholders for 21,249,413 Shares pursuant to the basic subscription privilege and 4,027,808 Shares pursuant to the additional subscription privilege, representing a
“I’m very pleased with the strength of support that we’ve received from our shareholders in respect of this rights offering,” said Catalin Kilofliski, Canagold’s CEO. “This demonstrates a significant vote of confidence in Canagold’s new management team, our strategy and the plans we have in place to advance New Polaris through feasibility and permitting.”
In addition, Canagold has issued 20,352,577 Shares to Sun Valley, which are additional to the Shares acquired by Sun Valley under its basic subscription privilege and the additional subscription privilege. From the gross proceeds to be received from Sun Valley totalling
Prior to the rights and standby guarantee exercise, Sun Valley held 22,990,371 shares in the capital of Canagold, which are equal to
Following the rights and standby guarantee exercise, Sun Valley holds 54,838,133 shares in the capital of the Company, which are equal to
The total number of issued and outstanding common shares of the Company upon completion of the Rights Offering will be 136,889,394.
To the knowledge of Canagold, after reasonable inquiry, directors, officers, employees and insiders of the Company, excluding Sun Valley, exercised subscription privileges, including subscription privileges associated with additional rights acquired in the market, and purchased approximately 50,000 Shares under the Rights Offering, representing total subscription proceeds of approximately
The participation in the Rights Offering by certain “related parties” of the Company, namely, directors, officers and
There were no selling fees or commissions paid in connection with the Rights Offering distribution. The net proceeds of the Rights Offering will be used in the manner disclosed in the rights offering circular of the Company dated
About Canagold
“Catalin Kilofliski”
Catalin Kilofliski
Chief Executive Officer
Neither the TSX nor its Regulation Services Provider (as that term is defined in the policies of the TSX) accepts responsibility for the adequacy or accuracy of this release.
Cautionary Note Regarding Forward-Looking Statements
This news release contains “forward-looking statements” within the meaning of
Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such risks and other factors include, among others risks related to the uncertainties inherent in the estimation of mineral resources; commodity prices; changes in general economic conditions; market sentiment; currency exchange rates; the Company's ability to continue as a going concern; the Company's ability to raise funds through equity financings; risks inherent in mineral exploration; risks related to operations in foreign countries; future prices of metals; failure of equipment or processes to operate as anticipated; accidents, labor disputes and other risks of the mining industry; delays in obtaining governmental approvals; government regulation of mining operations; environmental risks; title disputes or claims; limitations on insurance coverage and the timing and possible outcome of litigation. Although the Company has attempted to identify important factors that could affect the Company and may cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, do not place undue reliance on forward-looking statements. All statements are made as of the date of this news release and the Company is under no obligation to update or alter any forward-looking statements except as required under applicable securities laws.
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Tel: (604) 416-0337; Cell: (604) 551-2360
Toll Free: 1-877-684-9700
Email: knox@canagoldresources.com
Website: www.canagoldresources.com
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FAQ
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