Relevant Gold Announces Strategic Investment by Kinross Gold

Rhea-AI Summary

Relevant Gold Corp. (TSXV:RGC, OTCQB:RGCCF) announced a $1,530,000 private placement investment by Kinross Gold The financing involves 5,100,000 units priced at $0.30 per unit, each consisting of one common share and a half-share purchase warrant. The warrants are exercisable at $0.35 for 24 months. Post-placement, Kinross will hold 9.9% of Relevant Gold's shares on a partially diluted basis. An Investor Rights Agreement grants Kinross rights to future financing participation and a potential increase in ownership to 19.9%. Proceeds will fund Wyoming exploration projects and working capital. The closing is contingent on TSX Venture Exchange approval.

Positive

• Relevant Gold secured a $1,530,000 investment from Kinross Gold.
• Kinross will hold 9.9% of Relevant Gold, indicating strong investor confidence.
• The financing will support exploration activities and strengthen the company's financial position.
• An Investor Rights Agreement with Kinross could lead to increased future investment.

Negative

• The issuance of new shares and warrants may dilute existing shareholder value.

Insights

Financial Analyst

Relevant Gold's announcement of a strategic investment by Kinross Gold Corporation is notable for several reasons. Firstly, the $1.53 million private placement financing enhances Relevant Gold’s liquidity, important for funding their exploration activities in Wyoming. Given that exploration can be capital-intensive, this injection of funds can help sustain their operations and possibly accelerate their drilling program.

Secondly, Kinross Gold’s investment to obtain a 9.9% stake on a partially diluted basis indicates a significant endorsement. For a major player like Kinross to back a smaller exploration company can be seen as a vote of confidence in Relevant Gold’s potential and strategic direction. This relationship could also pave the way for more substantial future collaborations or support, especially with the investor rights that allow Kinross to participate pro-rata in future financings and potentially increase their stake to 19.9%.

Lastly, the formation of a technical advisory committee, comprising members from both companies, stands to enhance Relevant Gold's expertise. This could result in better-informed decision-making and potentially more successful exploration outcomes, translating to higher value creation for shareholders in the long term.

Market Research Analyst

The investment by Kinross Gold into Relevant Gold suggests several market dynamics at play. Firstly, the terms of the investment are favorable, with units priced at $0.30 per unit and each unit including a half-warrant, exercisable at $0.35. This not only provides immediate capital but also the potential for further capital through warrant exercises, which can be beneficial if the stock performs well.

In the broader context, this move can be seen as part of Kinross’s strategy to diversify and strengthen its portfolio. The gold exploration industry is known for its high risk and high reward nature. By investing in Relevant Gold, Kinross is betting on the geological expertise and the promising potential of the Wyoming projects.

For retail investors, this news may indicate a potentially lucrative opportunity if Kinross's confidence in Relevant Gold's projects is well-placed. However, investors should also be aware of the inherent risks in exploration ventures, where success is never guaranteed.

Not for dissemination in or into the United States or through U.S. newswires

All dollars are Canadian unless otherwise noted

VANCOUVER, BC / ACCESSWIRE / July 4, 2024 / Relevant Gold Corp. (TSXV:RGC)(OTCQB:RGCCF) (the "Company" or "Relevant Gold") is pleased to announce that it has entered into a subscription agreement with Kinross Gold Corporation ("Kinross") (NYSE:KGC),(TSX:K) in connection with a $1,530,000 private placement financing (the "Placement") of 5,100,000 units at a price of $0.30 per unit . The Placement represents a separate follow-on financing to the previously completed private placement (see news releases dated May 2, and June 26, 2024).

The Placement is for 5,100,000 Units at a price of $0.30 per unit, with each Unit consisting of one common share of the Company and a one-half share purchase warrant. Each whole warrant entitles the holder to purchase one additional common share of the Company at a price of $0.35 per share for a period of 24 months from the date of issue. There are no finder's fees associated with this Placement.

After giving effect to the Placement, Kinross will hold approximately 9.9% of the issued and outstanding common shares in the capital of the Company on a partially diluted basis. At closing, Relevant Gold and Kinross will enter into an Investor Rights Agreement reserving certain rights for Kinross, namely pro-rata participation in future financings, the ability to increase ownership to 19.9%, and the formation of a technical advisory committee comprised of two Kinross members and two Relevant Gold members.

"Kinross's strategic investment represents a strong vote of confidence in our team's Wyoming exploration vision and ability to execute in the field- we are thrilled to welcome them as a major shareholder and strategic partner," said Relevant Gold's CEO Rob Bergmann. "This investment marks a key milestone for Relevant, expanding our technical depth, strengthening our corporate structure and bolstering our treasury. We look forward to immediately leveraging this new relationship in our upcoming drilling program."

The Proceeds from the Placement are expected to be used to fund exploration activities at the Company's projects in Wyoming, USA, and for general working capital.

The Company anticipates closing the Placement shortly following receipt of approval from the TSX Venture Exchange.

This news release does not constitute an offer to sell or solicitation of an offer to sell any securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (The "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

About Relevant Gold Corp.
Relevant Gold Corp. is a North American gold exploration company founded by experienced exploration geologists and operated by a highly respected team with a proven record of significant value creation for shareholders. Relevant Gold is focused on the acquisition, exploration, discovery, and development of district-scale gold projects in the state of Wyoming - one of the most mining-friendly jurisdictions in the United States and globally.

On behalf of Relevant Gold Corp.,

Rob Bergmann, Chief Executive Officer

More information

Neither the TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.

For further information about Relevant Gold Corp. or this news release, please visit our website at www.relevantgoldcorp.com or contact Rob Bergmann, President and CEO, or Kristopher Jensen, Manager of Investor Relations, at 763-760-4886 or by email at investorrelations@relevantgoldcorp.com.

Cautionary Note Regarding Forward-Looking Statements and Historical Information

This news release contains certain statements that constitute forward-looking information within the meaning of applicable securities laws. These statements relate to future events of Relevant Gold Corp. ("Relevant" or "Relevant Gold" or "the Company"). Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "forecast", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe", "outlook" and similar expressions) are not statements of historical fact and may be forward-looking information. Forward-looking information involves known and unknown risks, uncertainties, and other factors which may cause the actual results, performance, or achievements of the Company to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking information. Such risks include, among others, the inherent risk of the mining industry; adverse economic and market developments; the risk that the Company will not be successful in completing additional acquisitions; risks relating to the estimation of mineral resources; the possibility that the Company's estimated burn rate may be higher than anticipated; risks of unexpected cost increases; risks of labour shortages; risks relating to exploration and development activities; risks relating to future prices of mineral resources; risks related to work site accidents, risks related to geological uncertainties and variations; risks related to government and community support of the company's projects; risks related to global pandemics and other risks related to the mining industry. The Company believes that the expectations reflected in such forward-looking information are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward‐looking information should not be unduly relied upon. These statements speak only as of the date of this news release. The Company does not intend, and does not assume any obligation, to update any forward‐looking information except as required by law. This document does not constitute an offer to sell, or a solicitation of an offer to buy, securities of the Company in Canada, the United States, or any other jurisdiction. Any such offer to sell or solicitation of an offer to buy the securities described herein will be made only pursuant to subscription documentation between the Company and prospective purchasers. Any such offering will be made in reliance upon exemptions from the prospectus and registration requirements under applicable securities laws, pursuant to a subscription agreement to be entered into by the Company and prospective investors.

The scientific and technical contents of this release have been approved by Mr. Brian C. Lentz, CPG #11999, Chief Exploration Officer of the Company, who is a "Qualified Person" as defined by Canadian National Instrument 43-101 (Standards of Disclosure for Mineral Projects). Mr. Lentz is not independent of the Company.

SOURCE: Relevant Gold Corp.

View the original press release on accesswire.com

FAQ

What is the value of the private placement investment in Relevant Gold by Kinross Gold?

The private placement investment by Kinross Gold in Relevant Gold is valued at $1,530,000.

How many units are being issued in the Relevant Gold private placement?

Relevant Gold is issuing 5,100,000 units in the private placement.

What is the price per unit in the Relevant Gold private placement?

The price per unit in the Relevant Gold private placement is $0.30.

What do the units in the Relevant Gold private placement consist of?

Each unit consists of one common share of Relevant Gold and a half-share purchase warrant.

What rights does Kinross Gold hold after the Relevant Gold private placement?

Kinross Gold holds rights to participate in future financings and the ability to increase ownership to 19.9%.

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

The proceeds will be used to fund exploration activities in Wyoming and for general working capital.

What percentage of Relevant Gold shares will Kinross Gold own after the placement?

Kinross Gold will own approximately 9.9% of Relevant Gold shares on a partially diluted basis.

What is the exercise price and duration of the warrants issued in the Relevant Gold private placement?

The exercise price of the warrants is $0.35, and they are valid for 24 months from the issue date.

When is the Relevant Gold private placement expected to close?

The private placement is expected to close shortly after receiving TSX Venture Exchange approval.