GGL Resources Corp. Closes Final Tranche of Private Placement
GGL Resources has closed the final tranche of a private placement, issuing 2.8 million common shares to ECEE Money, a company controlled by its CEO, W. Douglas Eaton. This raised $140,000, with shares priced at $0.05 each.
Shareholder approval was obtained on May 17, 2024, following the initial announcement on February 13, 2024. The transaction qualified as a related party transaction under TSX-V and MI 61-101 guidelines, but GGL utilized an exemption from formal valuation requirements.
The funds will be allocated to exploration and development at GGL's Gold Point Project in Nevada and general working capital. The issued shares will be under a hold period in Canada until October 1, 2024.
- Closed final tranche of private placement, raising $140,000.
- Shareholder approval obtained on May 17, 2024.
- Funds allocated to exploration and development activities, specifically at the Gold Point Project in Nevada.
- Exemption from formal valuation under MI 61-101 utilized, saving potential costs.
- Private placement involved a related party transaction, potentially raising governance concerns.
- Shares issued at a low price of $0.05 each, which may indicate undervaluation.
- All securities are subject to a hold period until October 1, 2024, potentially limiting immediate liquidity for investors.
VANCOUVER, BC / ACCESSWIRE / May 30, 2024 / GGL Resources Corp. (TSXV:GGL) ("GGL") announces that it obtained disinterested shareholder approval at its Annual General and Special Meeting held on May 17, 2024 for the creation of ECEE Money Limited ("ECEE") , a private company controlled by W. Douglas Eaton, the Chief Executive Officer and a Director of GGL, as a Control Person of GGL and for its participation in the private placement originally announced on February 13, 2024. GGL has now closed the final tranche of this private placement, consisting of the issuance to ECEE of 2,800,000 common shares at a price of
The participation of ECEE in the private placement constituted a related party transaction within the meaning of TSX-V Policy 5.9 and Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"). GGL has relied on the exemption from the formal valuation of MI 61-101 contained in section 5.5(a) in respect of the related party participation in the private placement, as the fair market value (as determined under MI 61-101) of the subject matter of, or the fair market value of the consideration for, the transaction, in relation to ECEE, did not represent more than
All of the securities issued pursuant to the final closing are subject to a hold period in Canada until October 1, 2024. The proceeds from ECEE's participation in the private placement will be used for exploration and development activities at GGL's Gold Point Project in the Walker Lane Trend of western Nevada and for general working capital purposes.
About GGL Resources Corp.
GGL is a seasoned, Canadian-based junior exploration company, focused on the exploration and advancement of under evaluated mineral assets in politically stable, mining friendly jurisdictions. GGL has optioned and wholly owns claims in the Gold Point district of the prolific Walker Lane Trend, Nevada. The Gold Point claims cover several gold-silver veins, four of which host past producing high-grade mines, and an exciting new porphyry discovery. GGL also owns the McConnell Project, which hosts epithermal gold veins and an under explored porphyry copper-gold prospect in the Kemess District of north-central British Columbia. GGL also holds diamond royalties on mineral leases adjacent to the Gahcho Kué diamond mine in the Northwest Territories.
ON BEHALF OF THE BOARD
"David Kelsch"
David Kelsch
President, COO and Director
For further information concerning GGL Resources Corp. or its various exploration projects please visit GGL's website at www.gglresourcescorp.com or contact:
Investor Inquiries Richard Drechsler | Corporate Information Linda Knight |
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 may contain forward looking statements based on assumptions and judgments of management regarding future events or results that may prove to be inaccurate as a result of exploration and other risk factors beyond its control, and actual results may differ materially from the expected results.
SOURCE: GGL Resources Corp.
View the original press release on accesswire.com
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