Desert Gold Announces Non-Brokered Private Placement and CAD $910,000 in Lead Orders

Rhea-AI Summary

Desert Gold Ventures Inc. announces a non-brokered private placement to raise up to CAD $910,000 through the issuance of units, with lead orders totaling CAD $2,029,520 in the last 30 days. The funds will be used for drilling activities to further explore gold deposits and support the ongoing PEA.

Positive

• Desert Gold Ventures Inc. is raising up to CAD $910,000 through a non-brokered private placement of 13,000,000 units at CAD $0.07 per unit.
• Lead orders from this round, combined with recent financing, have secured a total of CAD $2,029,520 in proceeds for the company within the last 30 days.
• Each unit includes one common share and a warrant to purchase an additional share at CAD $0.08 within three years of the financing's closing.
• The company plans to use the funds primarily for drilling activities over various gold deposits, including Mogoyafara South Deposit and Barani East Deposit extensions.
• Directors and officers participating in the financing will be subject to related party transaction regulations under Multilateral Instrument 61-101.
• The company's President and CEO, Jared Scharf, oversees the announcement.
• Scientific and technical information in the press release is reviewed and approved by Don Dudek, a Qualified Person under National Instrument 43-101.

Negative

• None.

Surrey, British Columbia--(Newsfile Corp. - April 23, 2024) - Desert Gold Ventures Inc. (TSXV: DAU) (FSE: QXR2) (OTCQB: DAUGF) ("Desert Gold" or "the Company") announces that, subject to exchange approval and the right to increase the offering, it will conduct a non-brokered private placement of up to 13,000,000 units at a price of CAD $0.07 per unit (the "Unit") to raise up to CAD $910,000 (the "Financing"). Lead orders from this round of funding combined with its recently closed financing (see Company press release dated March 26, 2024) have secured a total of CAD $2,029,520 in aggregate proceeds for the Company in the last 30 days.

Each Unit will consist of one common share in the equity of the Company and a share purchase warrant (the "Warrant"). Each Warrant entitles the holder to purchase one additional common share of the Company at a price of CAD $0.08 per common share for a period of three (3) years from the closing of the Financing. The Company may pay a finder's fee to qualified individuals in respect to the Financing. Securities issued from the Financing will be subject to a statutory hold period.

The Company intends to close the initial CAD $910,000 in lead orders upon exchange approval. Due to additional interest in the Financing, the Company may upsize and extend the close of its offering in the coming days.

The proceeds of the Financing will be used primarily to complete additional reverse circulation and air core drilling over the Mogoyafara South Deposit and the southeast extension of the Barani East Deposit. Drilling will also be completed over four nearby exploration target areas; Frikidi, Soa/Soa South, Kolon and Keniebandi. Holes drilled over the Mogoyafara South deposit (12.29 million tonnes containing 412,800 ounces of gold*) will focus on testing the extension of known gold zones and validation of the resource wire frame modes. Air core holes planned over the southeast extension of the Barani East Deposit will test the continuity of the oxide gold zones, which will in turn, support the Company's ongoing PEA**. Holes drilled over the exploration target areas will follow up on previously released drill intercepts (to 2.04 g/t Au over 30m at Soa***) and select gold-in-auger anomalies (See Figure 1 at the end of this release for zone locations).

Should any directors and officers of the Company acquire Units under the Financing such participation is a related party transaction as defined under Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The transaction will be exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 if neither the fair market value of any securities issued to or the consideration paid by such persons will exceed 25% of the Company's market capitalization.

This press release contains certain scientific and technical information. The Company is solely responsible for the contents and accuracy of any scientific and technical information related to it. Don Dudek, P.Geo. a director of Desert Gold and a Qualified Person under National Instrument 43-101, has reviewed and approved the scientific and technical information contained in this press release.

On Behalf of The Board

"Jared Scharf"
___________________________

Jared Scharf
President & CEO

* Desert Gold news release Jan 17, 2022
** Desert Gold news release Feb 24, 2020
*** Desert Gold news release Feb 1, 2024, Intercept true width unknown

About Desert Gold Ventures Inc.
Desert Gold Ventures Inc. is a gold exploration and development company which controls the 440 km² SMSZ Project in Western Mali containing Measured and Indicated Mineral Resources of 8.47 million tonnes grading 1.14 g/t gold totaling 310,300 ounces and Inferred Mineral Resources of 20.7 million tonnes grading 1.16 g/t gold totaling 769,200 ounces. For further information please visit www.SEDAR.com under the company's profile. Website: www.desertgold.ca

Contact
Jared Scharf, President & CEO
Email: jared.scharf@desertgold.ca

This news release contains forward-looking statements respecting the Company's ability to successfully complete the Offering. These forward-looking statements entail various risks and uncertainties that could cause actual results to differ materially from those reflected in these forward-looking statements. Such statements are based on current expectations, are subject to a number of uncertainties and risks, and actual results may differ materially from those contained in such statements, including the inability of the Company to successfully complete the Offering. These uncertainties and risks include, but are not limited to, the strength of the capital markets, the price of gold; operational, funding, and liquidity risks; the degree to which mineral resource estimates are reflective of actual mineral resources; and the degree to which factors which would make a mineral deposit commercially viable are present; the risks and hazards associated with mining operations. Risks and uncertainties about the Company's business are more fully discussed in the company's disclosure materials filed with the securities regulatory authorities in Canada and available at www.sedar.com and readers are urged to read these materials. The Company assumes no obligation to update any forward-looking statement or to update the reasons why actual results could differ from such statements unless required by law.

Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This news release does not constitute an offer to sell or a solicitation of an offer to buy the securities described herein in the United States. The securities described herein have not been and will not be registered under the United States securities act of 1933, as amended, and may not be offered or sold in the United States or to the account or benefit of a U.S. person absent an exemption from the registration requirements of such act.

Figure 1. Planview of SMSZ Project with gold zone locations and select highlighted drill intercepts.

To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/4954/206606_e77ffc28249898cd_001full.jpg

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/206606

FAQ

What is Desert Gold Ventures Inc. announcing?

Desert Gold Ventures Inc. announces a non-brokered private placement to raise up to CAD $910,000 through the issuance of units.

How much is each unit priced at in the private placement?

Each unit in the private placement is priced at CAD $0.07.

What is the total amount secured by lead orders in the last 30 days?

Lead orders, combined with recent financing, have secured a total of CAD $2,029,520 in proceeds for the company within the last 30 days.

What will the funds be primarily used for?

The funds raised will primarily be used for drilling activities over various gold deposits, including Mogoyafara South Deposit and Barani East Deposit extensions.

Who reviews and approves the scientific and technical information in the press release?

Don Dudek, a director of Desert Gold and a Qualified Person under National Instrument 43-101, reviews and approves the scientific and technical information in the press release.