E2Gold Announces Financing and Corporate Update

Rhea-AI Summary

E2Gold announces a private placement to raise up to C$500,000. The funds will be raised through the sale of units priced at C$0.020 and flow-through units priced at C$0.025. Proceeds will support drilling plans at the Hawkins Project, targeting the McKinnon East Extension to potentially double the McKinnon Zone Inferred Resource footprint. Each unit includes a common share and a warrant, exercisable at C$0.05 and C$0.06 respectively, valid for 24 months. Ellie Owens, President and Board member, resigns to avoid conflicts of interest. Her departure was acknowledged by Dr. David Good, Chairman of the Board. This financing is subject to TSX Venture Exchange approval.

Positive

• E2Gold plans to raise up to C$500,000 through equity private placement, showing active funding efforts.
• Funds will be used for next-stage drilling at Hawkins Project, targeting unexplored McKinnon East Extension, which could double the resource footprint.
• The financing includes units and flow-through units, offering flexibility for investors.
• Each unit comes with a warrant, providing potential for future investments at C$0.05 and C$0.06 within 24 months.
• Up to 50% of the offering can be purchased by insiders, indicating insider confidence.
• Dr. David Good's acknowledgment of Ellie Owens' contributions reflects strong internal leadership.

Negative

• The raising price of units (C$0.020) and flow-through units (C$0.025) is low, possibly indicating current undervaluation.
• The resignation of Ellie Owens, President and Board member, might signal internal changes or instability.
• The private placement is subject to TSX Venture Exchange approval, introducing potential regulatory risk.
• Potential dilution of shares due to issuance of new common shares in the private placement.
• Dependence on successful drilling outcomes which are yet to be confirmed.

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES OF AMERICA

TORONTO, ON / ACCESSWIRE / June 12, 2024 / E2Gold Inc. (TSXV:ETU)(OTCQB:ETUGF) is pleased to announce its plans to raise up to $500,000 in an equity private placement, consisting of a combination of units ("HD Units"), priced at C$0.020, and Flow-Through Units ("FT Units"), priced at C$0.025, in any combination.

Funds will be used for its next-stage drilling plans on its district-scale Hawkins Project and for corporate purposes. The permitted program will specifically target the never-before-drilled McKinnon East Extension (Figure 1), with potential to double the footprint of the McKinnon Zone Inferred Resource.¹

Figure 1. Map of the McKinnon East Extension area, showing high-grade gold prospects at Dubroy, Neswabin and east end of the McKinnon Zone.

The Company also announces the resignation of Ellie Owens from the Board of Directors and as President of the Company. Ellie has taken a new position within the industry and wants to avoid any potential conflicts of interest.

The Board thanks her for her contributions during E2Gold's formation and development. Dr. David Good, Chairman of the Board, said, "Ellie was instrumental in our early years here, and no doubt she will be successful in her new endeavours. We wish her well."

For the financing, each HD Unit will consist one common share of the Company plus one common share purchase warrant to acquire one additional common share at a price of C$0.05 for a period of 24 months from the date of issuance. Each FT Unit will be comprised of one "flow-through" common share of the Company (a "FT Share") and one common share purchase warrant (a "Warrant"), with each whole Warrant exercisable to acquire one additional common share at a price of $0.06 for a period of 24 months from the date of issuance thereof. Up to 50% of the offering may be purchased by insiders. The offering remains subject to the approval of the TSX Venture Exchange.

ABOUT E2GOLD INC.

E2Gold Inc. is a Canadian gold exploration company with a large flagship property, the 80 km long Hawkins Gold Project in north-central Ontario, about 140 km east of the Hemlo Gold Mine, and 75 km north of the Magino and Island Gold Mines. The property is anchored by the McKinnon Zone Inferred Resource of 6.2 Mt grading 1.65 Au g/t, for 328,800 ounces of gold.¹ E2Gold is committed to increasing shareholder value through discoveries at Hawkins.

Note 1: NI 43-101 Technical Report and Updated Mineral Resource Estimate on Hawkins Gold Project, Ontario, by P&E Mining Consultants, effective date September 10, 2020.

For further information please contact:

Jeff Pritchard
Investor Relations
info@e2gold.ca
+1 647 699 3340

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward Looking Statements - Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties, certain of which are beyond the control of E2Gold, including with respect to the receipt of all regulatory approvals. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.

SOURCE: E2Gold Inc.

View the original press release on accesswire.com

FAQ

What is the purpose of E2Gold's private placement?

E2Gold aims to raise up to C$500,000 for drilling at the Hawkins Project and corporate purposes.

What are the prices of the units in E2Gold's private placement?

The units are priced at C$0.020 and the flow-through units at C$0.025.

What is included in each unit of E2Gold's private placement?

Each unit includes one common share and a warrant exercisable at C$0.05. Each flow-through unit includes one flow-through common share and a warrant exercisable at C$0.06.

What are the terms of the warrants in E2Gold's private placement?

Warrants are exercisable at C$0.05 and C$0.06, respectively, for 24 months from the date of issuance.

What is the target area for E2Gold's drilling plans?

E2Gold will target the McKinnon East Extension at the Hawkins Project.

Why did Ellie Owens resign from E2Gold?

Ellie Owens resigned to avoid any potential conflicts of interest due to a new position within the industry.

Is E2Gold's private placement approved?

The private placement is subject to approval by the TSX Venture Exchange.

How much of E2Gold's offering can be purchased by insiders?

Up to 50% of the offering may be purchased by insiders.