Sky Gold Closes Financing

Rhea-AI Summary

Sky Gold Corp. (US:SRKZF) has closed a non-brokered private placement, raising $474,200.02 through the issuance of 1,236,667 Flow-through units and 8,000,000 non-flow-through units. Each unit includes common shares and warrants, allowing purchase at $0.08 per share for 24 months. Finders' fees of $7,500 and additional warrants were also paid. A senior officer subscribed for 700,000 Units, classified as a related party transaction. Funds will support work at the Mustang property in Newfoundland and cover general expenses.

Positive

• Raised $474,200.02 from the private placement.
• Increased liquidity from the issuance of 9,236,667 units with warrants.
• Funds will support ongoing work programs at the Mustang property.

Negative

• None.

VANCOUVER, BC / ACCESSWIRE / July 8, 2022 / Sky Gold Corp. (TSXV:SKYG) (US:SRKZF) ("Sky Gold Corp." or the "Company") is pleased to announce that the Company has closed its previously announced non-brokered private placement (see PR dated June 23, 2022). The Company issued a total of 1,236,667 Flow-through units (the "FT Units") and 8,000,000 non-flow-through units (the "NFT Units") for total aggregate gross proceeds of $474,200.02.

Each FT Unit is comprised of one common share (a "Share") and one-half transferrable Share purchase warrant (a "Warrant") of the Company. Each whole Warrant will entitle the holder to purchase one Share (a "Warrant Share") at a price of $0.08 per Warrant Share for a 24-month period after the Closing Date. Each NFT Unit is comprised of one common share (a "Share") and one transferrable Share purchase warrant (a "Warrant") of the Company. Each Warrant will entitle the holder to purchase one Share (a "Warrant Share") at a price of $0.08 per Warrant Share for a 24-month period after the Closing Date.

Finders' fees of $7,500 and 42,667 finder's warrants were paid to arms length parties. Finder's warrants entitle the Finder to purchase one common share in the Company at a price of $0.08 for a period of 12 months from the date of closing.

A senior officer of the Corporation has subscribed for an aggregate of 700,000 Units as part of the Private Placement, which participation constitutes a "related party transaction" within the meaning of Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101") and Policy 5.9 of the TSXV. The Corporation is relying on the exemption for a formal valuation under section 5.5(b) of MI 61-101 (trading on the TSXV), and on the exemption for minority shareholder approval under section 5.7(1)(b) of MI 61-101 (fair market value of less than $2,500,000).

All securities issued are subject to a statutory hold period expiring on November 8, 2022.

The financing, although conditionally approved by the TSX Venture Exchange (TSXV), is subject to final approval.

Proceeds raised from the Offerings will be used for ongoing work programs at the Company's Mustang property located in Newfoundland as well as general corporate overhead.

About Sky Gold Corp.

Sky Gold Corp. is a junior mineral exploration company engaged in acquiring and advancing mineral properties in Canada and the USA.

ON BEHALF OF THE BOARD

"Mike England"
Mike England, CEO & Director

FOR FURTHER INFORMATION PLEASE CONTACT:

Telephone: 1-604-683-3995
Toll Free: 1-888-945-770

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.

SOURCE: Sky Gold Corp.

View source version on accesswire.com:
https://www.accesswire.com/708078/Sky-Gold-Closes-Financing

FAQ

What was the total amount raised by Sky Gold Corp in the private placement?

Sky Gold Corp raised a total of $474,200.02 in the private placement.

What is the stock symbol for Sky Gold Corp?

The stock symbol for Sky Gold Corp is SRKZF.

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

Funds will be used for ongoing work programs at the Mustang property in Newfoundland and for general corporate overhead.

What is the price per share for the warrants issued in the private placement?

The price per share for the warrants issued is $0.08.

Is the private placement subject to approval?

Yes, the financing is subject to final approval by the TSX Venture Exchange.