Fury Announces Closing of C$5 Million Financing
Fury Gold Mines (TSX:FURY)(NYSE American:FURY) has successfully closed a C$5 million brokered private placement of 5,320,000 flow-through shares at C$0.94 each. The financing was managed by Haywood Securities Inc., with BMO Capital Markets, H.C. Wainwright & Co., , and Echelon Wealth Partners Inc. also participating. The gross proceeds will fund Canadian exploration expenses, particularly in Québec, with renouncements effective December 31, 2024. The shares are not restricted by resale limitations under Canadian law. Agents received a 6.0% commission on the gross proceeds. The securities are not registered in the U.S. and are not for U.S. distribution.
- Closed financing raised C$5 million.
- 5,320,000 shares sold at C$0.94 each.
- Financing managed by reputable agents like Haywood Securities and BMO Capital Markets.
- Funds to be used for Canadian exploration expenses, particularly in Québec.
- Renouncements effective December 31, 2024.
- No resale restrictions under Canadian securities laws.
- Agents' fees amount to 6.0% of the gross proceeds.
- Securities not registered under U.S. laws.
- Cannot offer or sell securities in the U.S.
Insights
The completion of the C$5 million financing by Fury Gold Mines Limited is a significant event for the company, especially given the context of the resource sector. The funds will be used to incur eligible Canadian exploration expenses, which are critical for the company’s growth and continuation of its exploration projects.
This funding provides Fury with the necessary capital to advance its Eau Claire and Éléonore South projects in Québec, potentially boosting its resource base. The involvement of well-known agents like Haywood Securities, BMO Capital Markets, H.C. Wainwright & Co. and Echelon Wealth Partners adds credibility to the offering, suggesting strong institutional support.
From a financial perspective, the absence of resale restrictions under the listed issuer financing exemption (LIFE Exemption) is a positive, as it allows greater liquidity for initial investors, potentially making it more attractive for future financing rounds. However, investors should be aware of the 6.0% compensation fee taken by the agents, which slightly reduces the net proceeds available for exploration activities.
In the short term, the market might react positively due to the secured funding and the immediate use of proceeds for value-adding exploration activities. In the long term, whether this financing translates into significant value for shareholders will depend on the success of the exploration projects.
The raised C$5 million is earmarked for exploration activities, which are essential for Fury's development pipeline. Specifically, the focus on Eau Claire and Éléonore South projects is noteworthy. These projects are situated in Québec, a mining-friendly jurisdiction with robust exploration incentives. The ability to renounce the qualifying expenditures to purchasers is a benefit, offering tax advantages.
For retail investors, understanding the strategic importance of these regions can provide insight into the potential for resource expansion. Eau Claire, for instance, has been a high-priority target due to its promising gold deposits. Strategic investments in these areas could not only expand Fury's resource base but also position the company favorably in a competitive market.
In the broader mining industry context, such financings are crucial, as they enable junior miners to sustain and expand their operations amidst volatile commodity prices. While the funding itself is a positive, the actual impact will rely on the exploration results which can be unpredictable.
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
VANCOUVER, BC / ACCESSWIRE / June 13, 2024 / Fury Gold Mines Limited (TSX:FURY)(NYSE American:FURY) ("Fury" or the "Company") is pleased to announce that it has closed its previously announced brokered private placement of 5,320,000 common shares of the Company that qualify as "flow-through shares" as defined under subsection 66(15) of the Income Tax Act (Canada) and section 359.1 of the Taxation Act (Québec) (the "FT Shares") at a price of C
The Offering was conducted by a syndicate of agents led by Haywood Securities Inc. and including BMO Capital Markets, H.C. Wainwright & Co., LLC, and Echelon Wealth Partners Inc. (collectively, the "Agents").
The gross proceeds of the Offering will be used by the Company to incur eligible "Canadian exploration expenses" that qualify as "flow-through mining expenditures" as such terms are defined in the Income Tax Act (Canada), and with respect to Québec resident purchasers will also qualify for inclusion in the "exploration base relating to certain Québec exploration expenses" and in the "exploration base relating to certain Québec surface mining expenses or oil and gas exploration expenses" within the meaning of the Taxation Act (Québec) (collectively, the "Qualifying Expenditures") related to the Company's projects in Québec on or before December 31, 2025. All Qualifying Expenditures will be renounced in favour of the purchasers of the FT Shares effective December 31, 2024. The exploration expenditures to be incurred will include expenditures in connection with the exploration of the Company's Eau Claire and Éléonore South projects, as detailed in the offering document posted on the Company's website at www.furygoldmines.com and on SEDAR+ at www.sedarplus.ca.
The FT Shares were sold to purchasers pursuant to the listed issuer financing exemption ("LIFE Exemption") under Part 5A of National Instrument 45-106 - Prospectus Exemptions and therefore are not subject to resale restrictions pursuant to applicable Canadian securities laws. In connection with the Offering, the Agents received compensation equal to
The securities offered in the Offering have not been, and will not be, registered under the U.S. Securities Act or any U.S. state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, United States persons absent registration or any applicable exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
About Fury Gold Mines Limited
Fury Gold Mines Limited is a Canadian-focused exploration company positioned in two prolific mining regions across the country and holds a 54 million common share position in Dolly Varden Silver Corp. (
Neither the TSX nor its Regulations Services Provider (as that term is defined in the policies of the TSX) accepts responsibility for the adequacy or accuracy of this news release.
For further information on Fury Gold Mines Limited, please contact:
Margaux Villalpando, Investor Relations
Tel: (844) 601-0841
Email: info@furygoldmines.com
Website: www.furygoldmines.com
Forward-Looking Information
This press release contains "forward-looking information" within the meaning of applicable Canadian securities laws. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, identified by words or phrases such as "believes", "anticipates", "expects", "is expected", "scheduled", "estimates", "pending", "intends", "plans", "forecasts", "targets", or "hopes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "will", "should" "might", "will be taken", or "occur" and similar expressions) are not statements of historical fact and may be forward-looking statements.
Forward-looking information herein includes, but is not limited to, statements that address activities, events or developments that Fury expects or anticipates will or may occur in the future including the proposed use of proceeds of the Offering and the tax treatment of the FT Shares. Although Fury has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information including the speculative nature of mineral exploration and development, fluctuating commodity prices, the future tax treatment of the FT Shares, competitive risks and the availability of financing, as described in more detail in our recent securities filings available at www.sedarplus.ca.
There may also be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Fury does not undertake to update any forward-looking information except in accordance with applicable securities laws.
SOURCE: Fury Gold Mines Limited
View the original press release on accesswire.com
FAQ
What is the total amount raised by Fury Gold Mines in their latest financing?
At what price were Fury Gold Mines' flow-through shares sold?
Which projects will benefit from the funds raised by Fury Gold Mines?
When will the renouncements for the flow-through shares be effective?
Are there any resale restrictions on the flow-through shares under Canadian law?
What commission did the agents receive for Fury Gold Mines' latest financing?
Can Fury Gold Mines' new securities be offered or sold in the U.S.?
