Gatling Exploration Announces $3 Million Financing

Rhea-AI Summary

Gatling Exploration Inc. (TSXV:GTR)(OTCQB:GATGF) has announced a private placement to raise up to $3,000,000. The offering includes 4,444,445 flow-through common shares at $0.45 each and 2,500,000 units priced at $0.40, each comprising one common share and half a warrant. The proceeds will fund Canadian Exploration Expenses, with flow-through mining expenditures qualifying under the Income Tax Act. All offered securities will be subject to a four-month hold and require acceptance by the TSX Venture Exchange.

Positive

• Private placement aims to raise $3,000,000, boosting financial resources.
• Proceeds will support Canadian Exploration Expenses, indicating investment in growth.

Negative

• Offering may lead to shareholder dilution.
• Dependence on TSX Venture Exchange acceptance poses a risk for the completion of the placement.

VANCOUVER, BC / ACCESSWIRE / June 11, 2021 / Gatling Exploration Inc. (TSXV:GTR)(OTCQB:GATGF) (the "Company" or "Gatling") is pleased to announce that it has arranged a private placement to raise gross proceeds of up to $3,000,000 (the "Offering").

The Offering will consist of a combination of (a) 4,444,445 common shares of the Company issued on a flow-through basis (the "FT Shares") at a price of $0.45 per FT Share; and (b) 2,500,000 units of the Company (the "Units") at a price of $0.40 per Unit. Each Unit will consist of one common share and one-half of one transferable share purchase warrant, each whole warrant (a "Warrant") exercisable into one additional common share at a price of $0.60 per share for a period of two years from the date of issue. Collectively the FT Shares and the Units shall be known as the "Offered Securities".

Finders' fees may be payable in whole or on part of the Offering pursuant to the policies of the TSX Venture Exchange.

The gross proceeds from the issuance of the FT Shares will be used for Canadian Exploration Expenses, and will qualify as "flow-through mining expenditures" (the "Qualifying Expenditures"), as defined in subsection 127(9) of the Income Tax Act (Canada), which will be renounced to the subscribers with an effective date no later than December 31, 2021, in an aggregate amount not less than the gross proceeds raised from the issue of the FT Shares, and, if the Qualifying Expenditures are reduced by the Canada Revenue Agency, the Company will indemnify each FT Share subscriber for any additional taxes payable by such subscriber as a result of the Company's failure to renounce the Qualifying Expenditures as agreed.

All Offered Securities will be subject to a four month hold period from the date of issue in accordance with applicable securities laws. The Offering is subject to acceptance of the TSX Venture Exchange.

ON BEHALF OF THE BOARD OF DIRECTORS,

Jason Billan, President and CEO

Gatling Exploration Inc.

For further information on Gatling, contact Investor Relations

Telephone: 1-888-316-1050

Email: ir@gatlingexploration.com

Neither 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.

Forward Looking Statements: Statements contained in this news release that are not historical facts are forward-looking statements, which are subject to a number of known and unknown risks, uncertainness and other factors that may cause the actual results to differ materially from those anticipated in our forward-looking statements. Although we believe that the expectations in our forward-looking statements are reasonable, actual results may vary, and we cannot guarantee future results, levels of activity, performance or achievements.

This news release does not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of any of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful, including any of the securities in the United States of America. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "1933 Act") or any state securities laws and may not be offered or sold within the United States or to, or for account or benefit of, U.S. Persons (as defined in Regulation S under the 1933 Act) unless registered under the 1933 Act and applicable state securities laws, or an exemption from such registration requirements is available.

SOURCE: Gatling Exploration Inc.

View source version on accesswire.com:
https://www.accesswire.com/651381/Gatling-Exploration-Announces-3-Million-Financing

FAQ

What is Gatling Exploration's recent funding announcement?

Gatling Exploration announced a private placement to raise up to $3,000,000 through flow-through shares and units.

How many shares are being offered in Gatling Exploration's placement?

The offering includes 4,444,445 flow-through shares and 2,500,000 units.

What is the purpose of Gatling Exploration's private placement announced on June 11, 2021?

The proceeds will be used for Canadian Exploration Expenses.

What are the terms of the warrants in Gatling Exploration's offering?

Each unit includes half a warrant, exercisable into one additional share at $0.60 for two years.

Is Gatling Exploration's offering subject to any hold period?

Yes, all offered securities are subject to a four-month hold period.