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Gold79 (TSXV:AUU) announces private placement

Mining, The Market Online Deal Room
TSXV:AUU
28 July 2022 09:15 (EDT)

Source: Gold 79 Mines

Gold79 Mines (AUU) has announced a non-brokered private placement to raise gross proceeds of up to $500,000.

The company will issue up of 16,666,667 units at $0.03 per unit. Each unit includes one common share and one whole common share purchase warrant. Each warrant entitles the holder to purchase one additional share for a period of 36 months.

“While we are drill-ready at Gold Chain and expect to receive drill permits to be drill ready in the near-term at Jefferson Canyon, market conditions suggest that these programs may have to wait,” explained Derek Macpherson, President, CEO & Director.

“This financing puts us in a position to both weather the current market and pursue other corporate initiatives,” he added.

The offering will be available to all shareholders of the company as of July 27, 2022.

The offering is expected to close on or about August 10, 2022.

About 50 per cent of the aggregate proceeds from the offering will be used for property and claim payments and exploration expenditures related to the Gold Chain, Arizona project; the Jefferson Canyon, Nevada project; and the Tip Top, Nevada project.

About 30 per cent will be used for working capital and general corporate purposes and about 20 per cent will be used to pay management fees to company officers.

Gold79 also plans to issue 2,130,537 common shares of the company in connection with a US$48,000 (C$61,786) anniversary payment due under the option agreement covering a portion of the company’s land holdings at the Gold Chain Project in Arizona.

Gold79 Mines Ltd. is a mining company focused on building ounces in the Southwest U.S.

Gold79 Mines Ltd. opened trading at $0.03 per share.


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