U.S. Gold Corp. Closes $10.2 Million Non-Brokered Registered Direct Offering

Rhea-AI Summary

U.S. Gold Corp. (NASDAQ: USAU) has successfully completed a non-brokered registered direct offering, raising $10.2 million in gross proceeds. The transaction, which closed on December 6, 2024, involved the sale of 1,457,700 shares of common stock at $7.00 per share, along with warrants to purchase 728,850 shares at an exercise price of $9.50 per share. Following the transaction, the company's total outstanding common shares reached 12,323,116. The company plans to utilize the net proceeds for working capital and general corporate purposes.

Insights

Financial Analyst

This $10.2 million capital raise through a registered direct offering represents a significant development for U.S. Gold Corp. The pricing at $7.00 per share comes at a premium compared to recent trading levels, suggesting strong investor confidence. The inclusion of warrants with a $9.50 strike price provides additional upside potential and could bring in another $6.9 million if fully exercised. The absence of a placement agent means reduced fees and better capital efficiency. With approximately 12.3 million shares outstanding post-offering, the dilution impact is relatively moderate at 11.8%. The strengthened balance sheet provides important working capital for advancing their mining operations and corporate initiatives. The successful completion of this non-brokered offering demonstrates management's ability to attract direct investment, which is particularly noteworthy in the current challenging market for junior mining companies.

CHEYENNE, Wyo., Dec. 6, 2024 /PRNewswire/ -- U.S. Gold Corp. ("U.S. Gold," the "Company," "we," "our" or "us") (NASDAQ: USAU), is pleased to announce that it has closed the previously announced purchase and sale of an aggregate of 1,457,700 shares of our common stock at $7.00 per share and warrants to purchase 728,850 shares of our common stock at an exercise price of $9.50 per share (the "Transaction"), in a registered direct offering. The aggregate gross proceeds from the Transaction totaled approximately $10.2 million and closed on December 6, 2024. After the close of the Transaction, the Company's common shares outstanding is 12,323,116.

The Company did not retain a placement agent in connection with the Transaction.

U.S. Gold intends to use the net proceeds from the Transaction for working capital and other general corporate purposes.

About U.S. Gold Corp.

U.S. Gold Corp. is a publicly traded, U.S. focused gold and copper exploration and development company.  Its fully permitted CK Gold Project is located in Southeast Wyoming and has a Preliminary Feasibility Study technical report, which was completed by Gustavson Associates, LLC.  In addition, the Company has two exploration projects:  Keystone Gold located on the Cortez Trend in Nevada about 11 miles south of Nevada Gold Mines' Cortez Hills Complex, and Challis Gold located in Idaho. For more information about U.S. Gold Corp., please visit https://www.usgoldcorp.gold/.

Cautionary Note Regarding Forward-Looking Statements

Certain statements in this press release are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may be identified by the use of forward-looking words such as "anticipate," "believe," "forecast," "estimated," and "intend," among others. These forward-looking statements include statements related to our intended use of the net proceeds from the Transaction. There are a number of factors that could cause actual events to differ materially from those indicated by such forward-looking statements. These factors include, but are not limited to, risks arising from: market and other conditions, the prevailing market conditions for metal prices and mining industry cost inputs, environmental and regulatory risks, COVID-19 risks, changes in interpretations of geological, geostatistical, metallurgical, mining or processing information, risks faced by junior companies generally engaged in exploration activities, whether U.S. Gold Corp. will be able to raise sufficient capital to develop the CK Gold Project and implement future drilling programs, the success or failure of future drilling programs, and other factors described in the Company's most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K filed with the Securities and Exchange Commission, which can be reviewed at www.sec.gov. The Company has based these forward-looking statements on its current expectations and assumptions about future events. While management considers these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory, and other risks, contingencies, and uncertainties, most of which are difficult to predict and many of which are beyond the Company's control. The Company undertakes no duty to correct or update any information contained herein.

For additional information, please contact:
U.S. Gold Corp. Investor Relations
+1 800 557 4550
ir@usgoldcorp.gold
www.usgoldcorp.gold

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SOURCE U.S. Gold Corp.

FAQ

How much did U.S. Gold Corp (USAU) raise in its December 2024 offering?

U.S. Gold Corp raised $10.2 million in gross proceeds through a non-brokered registered direct offering.

What is the exercise price of the warrants issued in USAU's December 2024 offering?

The warrants were issued with an exercise price of $9.50 per share.

How many shares did U.S. Gold Corp (USAU) sell in its December 2024 offering?

U.S. Gold Corp sold 1,457,700 shares of common stock at $7.00 per share.

What is USAU's total number of outstanding shares after the December 2024 offering?

After the offering, U.S. Gold Corp's total outstanding common shares reached 12,323,116.