Idaho Champion Gold Announces Closing of First Tranche Non-Brokered Private Placement

Rhea-AI Summary

Idaho Champion Gold Mines (OTCQB: GLDRF) has successfully closed the first tranche of its private placement, issuing 4,686,664 units for gross proceeds of $703,000. The offering, initially announced on May 25, 2021, has a target of 10,000,000 units for up to $1,500,000. Each unit consists of one common share and a warrant redeemable at $0.25 for 48 months. The funds raised will support exploration at the Champagne Gold Project in Idaho and general working capital. All securities will be subject to a four-month hold period.

Positive

• Raised $703,000 in the first tranche of private placement.
• Funding will aid in exploration at the Champagne Gold Project.

Negative

• Private placement could lead to shareholder dilution if further units are issued.
• Completion subject to regulatory approval, creating uncertainty.

NOT FOR DISTRIBUTION TO DISSEMINATION IN THE UNITED STATES

TORONTO, ON / ACCESSWIRE / June 25, 2021 / Idaho Champion Gold Mines Canada Inc. (CSE:ITKO)(OTCQB:GLDRF)(FSE:1QB1) ("Idaho Champion" or the 'Company') is pleased to announce that it has closed the first tranche of the private placement offering announced on May 25, 2021. AS part of the closing of this first tranche, the Company issued 4,686,664 units for gross proceeds of $703,000. The Company paid a cash finders' fee of $18,516 and issued 123,439 finders' warrants.

On May 25, 2021, Idaho Champion announced a non-brokered private placement of up to 10,000,000 units at a price of $0.15 per unit for gross proceeds of up to $1,500,000.

Each unit will consist of one (1) common share and one (1) non-transferable purchase warrant (a "Warrant"). Each Warrant will entitle the holder to purchase one additional common share at a price of $0.25 for a period of 48 months from the date of issue and will be subject to an acceleration clause whereby the Company may force exercise of the warrant any time before the end of the 48-month period if the Idaho Champion share price trades over $0.40 per share for 20 consecutive days.

The proceeds of the financing will be used for the funding of an exploration program the Champagne Gold Project in Idaho, USA, and for general working capital purposes.

The financing is subject to regulatory approval and all securities to be issued pursuant to the financing are subject to a four-month hold period under applicable Canadian securities laws. The Company paid finders' fees consisting of 8% cash and 8% non-transferable warrants in connection with the financing, subject to compliance with the policy of the Canadian Securities Exchange (the "CSE"). Completion of the private placement and payment of any finders' fees remain subject to the receipt of all necessary regulatory approvals, including approval of the CSE.

About Idaho Champion Gold Mines Inc.

Idaho Champion is a discovery-focused gold exploration company that is committed to advancing its 100%-owned highly prospective mineral properties located in Idaho, United States. The Company's shares trade on the CSE under the trading symbol "ITKO", on the OTCQB under the trading symbol "GLDRF", and on the Frankfurt Stock Exchange under the symbol "1QB1". Idaho Champion is vested in Idaho with the Baner Project in Idaho County, the Champagne Project located in Butte County near Arco, and four cobalt properties in Lemhi County in the Idaho Cobalt Belt. Idaho Champion strives to be a responsible environmental steward, stakeholder and a contributing citizen to the local communities where it operates. Idaho Champion takes its social license seriously, employing local community members and service providers at its operations whenever possible.

ON BEHALF OF THE BOARD

"Jonathan Buick"
Jonathan Buick, President and CEO

For further information, please visit the Company's SEDAR profile at www.sedar.com or the Company's corporate website at www.idahochamp.com.

For further information please contact:

Nicholas Konkin, Marketing and Communications
Phone: (416) 567- 9087
Email: nkonkin@idahochamp.com

THIS PRESS RELEASE DOES NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY ANY SECURITIES IN ANY JURISDICTION, NOR SHALL THERE BE ANY OFFER, SALE, OR SOLICITATION OF SECURITIES IN ANY STATE IN THE UNITED STATES IN WHICH SUCH OFFER, SALE, OR SOLICITATION WOULD BE UNLAWFUL.

Cautionary Statements

Neither the Canadian Securities Exchange nor its regulation services provider has reviewed or accepted responsibility for the adequacy or accuracy of this press release This press release may include forward-looking information within the meaning of Canadian securities legislation, concerning the business of the Company. Forward-looking information is based on certain key expectations and assumptions made by the management of the Company, including suggested strike extension. Although the Company believes that the expectations and assumptions on which such forward-looking information is based on are reasonable, undue reliance should not be placed on the forward-looking information because the Company can give no assurance that they will prove to be correct. Forward-looking statements contained in this press release are made as of the date of this press release. The Company disclaims any intent or obligation to update publicly any forward-looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.

SOURCE: Idaho Champion Gold Mines Canada Inc.

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https://www.accesswire.com/653173/Idaho-Champion-Gold-Announces-Closing-of-First-Tranche-Non-Brokered-Private-Placement

FAQ

What is the recent funding news for Idaho Champion Gold Mines (GLDRF)?

Idaho Champion Gold Mines closed the first tranche of a private placement, raising $703,000 by issuing 4,686,664 units.

How much is Idaho Champion's total private placement offering expected to raise?

The total private placement offering is expected to raise up to $1,500,000 by issuing up to 10,000,000 units.

What will the proceeds from the private placement be used for?

The proceeds will fund exploration at the Champagne Gold Project and general working capital.

What are the key terms of the warrants issued with the private placement?

Each warrant allows the purchase of an additional common share at $0.25 for 48 months, with an acceleration clause if the share price exceeds $0.40.