Mayfair Gold Closes Flow-Through Financing

Rhea-AI Summary

Mayfair Gold Corp. (MFGCF) announced the successful closing of a private placement financing, raising $7,009,000 through the issuance of 4,300,000 flow-through common shares at $1.63 per share, a 36% premium over its June 8 closing price. The funds will support the exploration of the Fenn-Gib gold project in Ontario, which contains an Indicated Resource of 2.08M ounces of gold. The FT Shares are subject to a four-month hold period expiring November 1, 2022, and proceeds will qualify as Canadian Exploration Expenses, renounced effectively by December 31, 2022.

Positive

• Raised $7,009,000 through private placement financing.
• Funds will advance exploration efforts at the Fenn-Gib gold project.
• FT Shares issued at a 36% premium to market price.

Negative

• None.

VANCOUVER, British Columbia, June 30, 2022 (GLOBE NEWSWIRE) -- Mayfair Gold Corp. (“Mayfair” or the “Company”) (TSX-V: MFG; OTCQX: MFGCF) today announced the closing of its previously announced private placement financing (the “Offering”) for proceeds of $7,009,000. The funds will be used to further the Company’s successful exploration program at the Fenn-Gib gold project in the Timmins region of Ontario.

The Company issued 4,300,000 common shares ($7,009,000) on a flow-through basis (the “FT Shares”) at a price per FT share of $1.63. The Offering price per FT Share represents a premium of 36% over the closing price of Mayfair Gold common shares on the TSX.V on June 8, 2022.

All proceeds from the sale of FT Shares will be used for expenditures which qualify as Canadian Exploration Expenses (CEE) within the meaning of the Income Tax Act (Canada). The Company will renounce such CEE expenditures with an effective date of no later than December 31, 2022.

The FT Shares issued are subject to a four-month hold period expiring on November 1, 2022.

About Mayfair

Mayfair is a Canadian mineral exploration company focused on advancing the 100% controlled Fenn-Gib gold project in the Timmins region of Northern Ontario. The Fenn-Gib gold deposit is Mayfair’s flagship asset. An updated open-pit constrained NI 43-101 resource estimate (Source: “NI 43-101 Technical Report Fenn-Gib Project, Ontario, Canada” dated February 5, 2021, authored by JDS Energy and Mining, Inc. and Kirkham Geosystems Ltd.) reported a total Indicated Resource of 70.2M tonnes containing 2.08M ounces at a grade of 0.921 g/t Au and an Inferred Resource of 3.8M tonnes containing 75,000 ounces at a grade of 0.618 g/t Au. The deposit has a strike length of approx. 1.25km with widths ranging up to 300m. The gold mineralized zones remain open at depth and along strike to the east and west. Recently completed metallurgical tests confirm that the Fen-Gib deposit can deliver robust gold recoveries of up to 94%.

For further information contact:

Patrick Evans, President and CEO
Email: patrick@mayfairgold.ca
Phone: (480) 747-3032
Web: www.mayfairgold.ca

Forward Looking Statements

This news release contains forward-looking statements and forward-looking information within the meaning of Canadian securities legislation (collectively, "forward-looking statements") that relate to Mayfair’s current expectations and views of future events. Any statements that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance (often, but not always, through the use of words or phrases such as "will likely result", "are expected to", "expects", "will continue", "is anticipated", "anticipates", "believes", "estimated", "intends", "plans", "forecast", "projection", "strategy", "objective" and "outlook") are not historical facts and may be forward-looking statements and may involve estimates, assumptions and uncertainties which could cause actual results or outcomes to differ materially from those expressed in such forward-looking statements. No assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release should not be unduly relied upon. These statements speak only as of the date of this news release.

Forward-looking statements are based on a number of assumptions and are subject to a number of risks and uncertainties, many of which are beyond Mayfair’s control, which could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking statements. Such risks and uncertainties include, but are not limited to, the impact and progression of the COVID-19 pandemic and other factors. Mayfair undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by law. New factors emerge from time to time, and it is not possible for Mayfair to predict all of them, or assess the impact of each such factor or the extent to which any factor, or combination of factors, may cause results to differ materially from those contained in any forward-looking statement. Any forward-looking statements contained in this news release are expressly qualified in their entirety by this cautionary statement.

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 news release.

FAQ

What is the recent financing amount raised by Mayfair Gold Corp. (MFGCF)?

Mayfair Gold Corp. raised $7,009,000 through a private placement financing.

What will the funds from Mayfair Gold Corp.'s financing be used for?

The funds will be used to further the exploration program at the Fenn-Gib gold project.

What is the price per flow-through share issued by Mayfair Gold Corp.?

The price per flow-through share was $1.63.

What is the premium of the flow-through share price over the closing price on June 8, 2022?

The flow-through share price represents a 36% premium over the closing price on June 8, 2022.

When do the FT Shares issued by Mayfair Gold Corp. become unrestricted?

The FT Shares are subject to a four-month hold period expiring on November 1, 2022.