- Allegiant Gold (AUAU) has closed the final tranche of a previously announced non-brokered private placement for gross proceeds of over C$3 million
- Pursuant to the final tranche, the company issued a total of 6.84 million units at a price of 25 cents each for an aggregate of $1.71 million
- All together, a total of 12 million units were issued, comprised of one common share and half of one share purchase warrant
- The proceeds will be used to fund the company’s exploration activities at its Eastside property in Nevada, USA
- Allegiant Gold (AUAU) is currently down 1.11 per cent and is trading at 44 cents per share at 1:01pm EDT
Allegiant Gold (AUAU) has closed the final tranche of a previously announced non-brokered private placement for gross proceeds of over C$3 million.
Under the final tranche, the company issued a total of 6.84 million units at a price of 25 cents each for an aggregate of $1.71 million. All together, a total of 12 million units were issued, comprised of one common share and half of one share purchase warrant.
Each whole share purchase warrant will entitle the holder to acquire an additional common share at a price of 40 cents, exercisable over a period of 18 months from the date of issuance.
In connection with the closing of the final tranche, Allegiant paid a finder’s fee of $78,300 in cash and 313,200 finder’s warrants to Beacon Securities, Canaccord Genuity and PI Financial as consideration for their services.
The proceeds raised under the placement will be used to fund exploration work at the company’s wholly owned Eastside property in central Nevada, USA. Allegiant will focus on permitted regions surrounding the original pit zone, with a key emphasis on resource expansion through the testing of newly targeted high-priority areas to the east and west of the preliminary resource.
A portion of the proceeds will also be used to increase investor awareness of the company and its assets, as well as for general working capital purposes.
Peter Gianulis, CEO of Allegiant Gold, said he is happy to have concluded the financing, which included a strong balance between retail and institutional investors.
“Including this recent fund raise, we expect to have over $4.5 million in cash and liquid marketable securities allowing us to advance our projects well into 2021.
“We look forward to providing our shareholders with an update in the coming weeks,” he added.
Allegiant Gold (AUAU) is currently down 1.11 per cent to $0.44 per share at 1:01pm EDT.