Canadian Gold Corp. Closes Over-Subscribed Private Placement

Rhea-AI Summary

Canadian Gold Corp. (TSXV: CGC) has successfully closed an over-subscribed private placement, raising a total of $1,634,995. The offering was completed in two tranches:

1. First tranche (June 21, 2024): 1,968,750 flow-through shares at $0.16 per share, raising $315,000.

2. Second tranche (July 17, 2024): 7,625,000 flow-through shares at $0.16 and 714,250 common shares at $0.14, raising $1,320,000.

The company paid $89,100 in finders fees. Insiders subscribed for 1,026,750 shares ($149,995). All securities have a four-month hold period. The funds will be used for Canadian Exploration Expenditures (CEE), primarily for the Phase 3 exploration program at the flagship Tartan Lake property, focusing on expanding the gold resource.

Positive

• Raised $1,634,995 through an over-subscribed private placement
• Issued 9,593,750 flow-through shares at $0.16 per share
• Issued 714,250 common shares at $0.14 per share
• Insider participation of $149,995 indicates management confidence
• Funds to be used for Phase 3 exploration program at Tartan Lake property

Negative

• Paid $89,100 in finders fees, reducing net proceeds
• Dilution of existing shareholders due to new share issuance

Toronto, Ontario--(Newsfile Corp. - July 17, 2024) - Canadian Gold Corp. (TSXV: CGC) ("Canadian Gold" or the "Company") announces the completion of its final tranche closing of its private placement offering, raising an aggregate $1,634,995 (see also news release dated June 21, 2024).

The Company issued 1,968,750 flow through shares at a price of $0.16 per share for gross proceeds of $315,000 in its first tranche closing on June 21, 2024, and on July 17, 2024 the Company issued: (i) 7,625,000 flow through shares at a price of $0.16 for gross proceeds of $1,220,000; and (ii) 714,250 common shares at a price of $0.14 for gross proceeds of $99,995.

In connection with this offering, the Company paid $89,100 in finders fees to eligible finders, and insiders subscribed for 1,026,750 ($149,995) of the total shares issued in this in this offering. All securities issued are subject to a hold period of four months.

The issuance of flow through shares shall be incurred on the Company's Canadian exploration projects, qualifying as Canadian Exploration Expenditures (CEE). The bulk of the private placement proceeds will be deployed in the new Phase 3 exploration program which is focused on expansion of the gold resource at the Company's flagship Tartan Lake property.

For Further Information, Please Contact:

Michael Swistun, CFA
President & Chief Executive Officer
Canadian Gold Corp.
(204) 232-1373
info@canadiangoldcorp.com

About Canadian Gold Corp.

Canadian Gold Corp. is a Toronto-based mineral exploration and development company whose objective is to expand the high-grade gold resource at the past producing Tartan Mine, located in Flin Flon, Manitoba. The Company holds a 100% interest in greenfields exploration properties in Ontario and Quebec adjacent to some of Canada's largest gold mines and development projects, specifically, the Canadian Malartic Mine (QC), the Hemlo Mine (ON) and Hammond Reef Project (ON). The Company is 35% owned by Robert McEwen, who was the founder and CEO of Goldcorp and is Chairman and CEO of McEwen Mining.

CAUTION REGARDING FORWARD-LOOKING INFORMATION

This news release of Company contains statements that constitute "forward-looking statements." Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause Canadian Gold's actual results, performance or achievements, or developments in the industry to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/216911

FAQ

How much did Canadian Gold Corp. (TSXV: CGC) raise in its recent private placement?

Canadian Gold Corp. raised a total of $1,634,995 in its recent over-subscribed private placement.

What was the price per share for the flow-through shares issued by Canadian Gold Corp. (TSXV: CGC)?

The flow-through shares were issued at a price of $0.16 per share.

How many common shares did Canadian Gold Corp. (TSXV: CGC) issue in the second tranche of the private placement?

Canadian Gold Corp. issued 714,250 common shares at a price of $0.14 in the second tranche of the private placement on July 17, 2024.

What is the main purpose of the funds raised by Canadian Gold Corp. (TSXV: CGC) in this private placement?

The bulk of the private placement proceeds will be used for the Phase 3 exploration program, focused on expanding the gold resource at the company's flagship Tartan Lake property.

How much did insiders of Canadian Gold Corp. (TSXV: CGC) subscribe for in this private placement?

Insiders subscribed for 1,026,750 shares, worth $149,995, in this private placement.