RooGold Closes First Tranche of Private Placement & Welcomes Strategic Investor Crescat Capital LLC

Rhea-AI Summary

RooGold Inc. has completed the first tranche of a Non-Brokered Unit Private Placement, raising $2,632,500 by issuing 10,530,000 Units at $0.25 per Unit. Each Unit includes a Common Share and a half Warrant, allowing purchase of an additional share at $0.40 over two years. RooGold has engaged Crescat Capital LLC as a strategic advisor, enhancing its exploration efforts in New South Wales, Australia. Proceeds will support exploration, investor relations, and operational costs. The Units are subject to a trading restriction until February 2, 2022.

Positive

• Successfully raised $2,632,500 through the issuance of 10,530,000 Units.
• Strategic partnership with Crescat Capital LLC may enhance exploration and development strategy.
• Proceeds will fund phase 1 exploration of high-grade precious metals properties.

Negative

• None.

VANCOUVER, BC / ACCESSWIRE / October 4, 2021 / (CSE:ROO)(OTC PINK:JNCCD)(Frankfurt:5VHA) - RooGold Inc. ("RooGold" or the "Issuer") announces that it has closed a first tranche of its previously announced Non-Brokered Unit Private Placement, on a post-Consolidation basis, by issuing 10,530,000 Units at $0.25 per Unit and raising $2,632,500. Each Unit consists of a Common Share and a half (1/2) a Common Share Purchase Warrant, each whole Warrant entitling the holder to purchase an additional Common Share at $0.40 per Share for a two year period from Closing. The term of the Warrants is subject to an Accelerator Clause that the Issuer can elect to trigger if the Issuer's Share price trades above $0.50 for 30 consecutive trading days.

RooGold has also entered into a Strategic Shareholder Agreement with Crescat Capital LLC of Denver, Colorado. Crescat's Investment Team and its Geological and Technical Director will act as advisors to RooGold management when called upon. RooGold Shareholder Dr. Quinton Hennigh, through his role as Geological and Technical Director of Crescat, will be available to provide expertise regarding RooGold's exploration and development strategy and other geological and technical matters.

"We are pleased to welcome Crescat as a significant new shareholder of RooGold, along with our additional group of new stakeholders," commented Mike Mulberry, Chief Executive Officer of the Company. "We are very excited about the recent asset base we have acquired in New South Wales, Australia, and we believe that with hard work and perseverance, we will uncover some significant opportunities in the area. We hope to replicate other success stories which have been supported by Crescat and trailblazed by Dr. Hennigh over the past decade."

Crescat is a global macro asset management firm headquartered in Denver, Colorado. Crescat's mission is to grow and protect wealth over the long term by deploying tactical investment themes based on proprietary value-driven equity and macro models. Crescat's goal is industry-leading absolute and risk-adjusted returns over complete business cycles with low correlation to common benchmarks. Crescat's investment process involves a mix of asset classes and strategies to assist with each client's unique needs and objectives, and includes global macro, long/short, large cap and precious metals funds.

The net proceeds from the Private Placement will be used for phase 1 exploration of RooGold's Australian properties acquired from Southern Precious Metals Ltd. (see Aug. 19, 2021 news release), investor relations & marketing, as a reserve for exploration of its conditionally acquired Australian properties from RooGold Ltd, and Aussie Precious Metals Corp, and for working capital.

In connection with the Private Placement, Foundation Markets Inc., Echelon Wealth, Canaccord Genuity, PI Financial, Research Capital, and Gravitas Securities Inc. collectively received Finder's Fees of $166,200 and 664,800 Finders' Warrant, each Finder's Warrant entitling the holder to purchase a Common Share at $0.32 for a two year period. The term of the Finder's Warrants is subject to an Accelerator Clause that the Issuer can elect to trigger if RooGold's shares trade above $0.50 for 30 consecutive trading days.

The Units are subject to a statutory restricted trading period expiring on February 2^nd, 2022.

About ROOGOLD

ROOGOLD is a Canadian based junior venture mineral exploration issuer which is uniquely positioned to be a dominant player in New South Wales, Australia, through a growth strategy focused on the consolidation and exploration of highly mineralized precious metals properties in this prolific region of Australia. Through its acquisition of Southern Precious Metals Ltd., RooGold Ltd. and Aussie Precious Metals Corp. properties, RooGold commands a portfolio of 13 high-grade potential gold (9) and silver (4) concessions covering 1,380 km2 which is home to 137 historic mines and prospects.

For further information please contact:

Michael Mulberry
T: 778-855-5001
info@roogoldinc.com

Forward-Looking Statements

This press release may contain forward-looking statements within the meaning of applicable securities law. Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur.

Although the Issuer believes that the expectations reflected in applicable forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. Such forward-looking statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in such statements.

NEITHER THE CANADIAN SECURITIES EXCHANGE NOR ITS REGULATION SERVICES PROVIDER ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

SOURCE: RooGold Inc.

View source version on accesswire.com:
https://www.accesswire.com/666338/RooGold-Closes-First-Tranche-of-Private-Placement-Welcomes-Strategic-Investor-Crescat-Capital-LLC

FAQ

What was the amount raised in RooGold's recent private placement?

RooGold raised $2,632,500 by issuing 10,530,000 Units.

What is the price per Unit in RooGold's private placement?

The price per Unit in RooGold's private placement was $0.25.

Who is Crescat Capital LLC?

Crescat Capital LLC is a strategic partner acting as an advisor to RooGold's management.

When is the restricted trading period for RooGold's Units?

The restricted trading period for RooGold's Units expires on February 2, 2022.

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

The proceeds will be used for exploration, investor relations, and working capital.