Source: GFG Resources
  • GFG Resources (GFG) has announced a private placement to raise gross proceeds of up to C$3.0 million
  • The offering will consist of a combination of units, flow-through common shares, and premium units
  • The funds raised will focus on completing a drill program to infill and expand the Montclerg gold system and test several regional targets on the Goldarm Property
  • GFG is a North American precious metals exploration company focused on district-scale gold projects in Ontario and Wyoming
  • GFG Resources Inc. (GFG) is down 16.67 per cent on the day, trading at C$0.125 per share at 12:30 pm ET

GFG Resources (GFG) has announced a private placement to raise gross proceeds of up to C$3.0 million.

The offering will consist of a combination of units, flow-through common shares, and premium units at prices of C$0.13, C$0.15, and C$0.1866 per unit, respectively. Each unit will comprise one common share and one-half of one share purchase warrant. Each whole share purchase warrant will entitle the holder to acquire one additional common share at an exercise price of C$0.18 for 36 months. Each premium unit will comprise one FT share and one-half of one Warrant.

If the closing price of the company’s common shares reaches or exceeds $0.26 for 10 consecutive trading days during the exercise period of the warrants, GFG can accelerate the expiry date of the warrants.

The securities issued will not be subject to a hold period under Canadian securities laws. The gross proceeds raised from the sale of FT shares and premium FT shares will be used for exploration activities in Ontario. The net proceeds raised from the sale of units and warrants, including in part the premium units, will be used for exploration activities on the company’s projects in Ontario, as well as for general working capital purposes.

The funds raised in this offering will focus on completing an 8,000-10,000 metre drill program to infill and expand the Montclerg gold system and test several regional targets on the Goldarm Property, which the company has in its drill target pipeline.

The offering is scheduled to close on or about March 15, 2023, subject to the receipt of all necessary approvals.

The company may pay finder’s fees of up to 6 per cent of the total gross proceeds raised on a portion of the offering.

GFG is a North American precious metals exploration company focused on district-scale gold projects in tier-one mining jurisdictions, Ontario and Wyoming. The company currently operates three gold projects in Ontario and the Rattlesnake Hills Gold Project in Wyoming.

GFG Resources Inc. (GFG) is down 16.67 per cent on the day, trading at C$0.125 per share at 12:30 pm ET.


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