Winston Gold Closes $1,418,750 Private Placement

Rhea-AI Summary

Winston Gold Corp. (CSE:WGC, OTCQB:WGMCF) has completed a non-brokered private placement, raising $1,418,750 by issuing 18,916,667 units at $0.075 per unit. Each unit consists of one common share and a warrant exercisable for two years at $0.105. Insiders subscribed for 5,000,000 units totaling $375,000, qualifying as related party transactions. Gross proceeds will support general corporate purposes and advance the Winston gold project in Montana.

Positive

• Raised $1,418,750 through the private placement.
• Insiders' participation reflects confidence in the company.

Negative

• Insider subscriptions could raise concerns about minority shareholder interests.

WINNIPEG, MB / ACCESSWIRE / August 30, 2021 / Winston Gold Corp. ("Winston Gold" or the "Corporation") (CSE:WGC) (OTCQB:WGMCF) is pleased to announce the closing of a non-brokered private placement (the "Private Placement") consisting of 18,916,667 units (the "Units") at a purchase price of $0.075 per Unit to raise gross proceeds of $1,418,750.

Each Unit consists of one common share (a "Share") in the share capital of the Corporation and one share purchase warrant (a "Warrant"). Each full Warrant will entitle the holder to purchase one additional Share in the share capital of the Corporation for a period of two years, at an exercise price of $0.105 per Share.

All securities issued in connection with the Private Placement are subject to a statutory hold period of four months plus a day from the date of issuance in accordance with applicable securities legislation.

Insiders of the Corporation subscribed for an aggregate of 5,00,000 Units for gross proceeds of $375,000.00 under the Private Placement (the "Insider Subscriptions"). The Insider Subscriptions constitute "related party transactions" within the meaning of Multilateral Instrument 61-101 - Protection of Minority Securityholders in Special Transactions ("MI 61-101"). The Corporation has relied on the exemptions from the formal valuation and minority shareholder approval requirements of MI 61-101 contained in Sections 5.5(a) and 5.7(1)(a), respectively, of MI 61-101 in respect of the Insider Subscriptions.

The net proceeds from the Private Placement will be used for general corporate purposes and to advance the Winston gold project near Helena Montana.

About Winston Gold

Winston Gold is a junior mining company focused on advancing high-grade, low-cost mining opportunities into production. Towards that end, the Corporation has acquired an underexplored and under-exploited gold/silver mining opportunity, being the Winston Gold project near Helena, Montana.

ON BEHALF OF THE BOARD OF DIRECTORS OF THE CORPORATION

For further information, please contact:

Murray Nye, Chief Executive Officer

Suite 201-919 Notre Dame Avenue, Winnipeg, Manitoba, R3E 0M8 Canada

Telephone: (204) 989-2434 E-mail: murray@winstongold.com

The CSE has neither approved nor disapproved the information contained herein.

Suite 201 - 919 Notre Dame Avenue

Winnipeg, Manitoba, R3E 0M8 Canada

Telephone: (204) 989-2434

SOURCE: Winston Gold Corp.

View source version on accesswire.com:
https://www.accesswire.com/662052/Winston-Gold-Closes-1418750-Private-Placement

FAQ

What is the amount raised in Winston Gold's private placement?

Winston Gold raised $1,418,750 in its private placement.

What are the terms of the warrants issued by Winston Gold?

Warrants allow purchase of additional shares at $0.105 for two years.

How many units were issued in the private placement by Winston Gold?

A total of 18,916,667 units were issued in the private placement.

Did insiders participate in the Winston Gold private placement?

Yes, insiders subscribed for 5,000,000 units totaling $375,000.

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

Proceeds will be used for general corporate purposes and advancing the Winston gold project.