- Goldshore Resources (GSHR) is increasing the size of its previously announced brokered private placement to up to $6,000,000 gross proceeds
- The increase was in response to strong investor demand
- Goldshore intends to use the net proceeds from the sale of units for working capital and future exploration work on its Moss Lake gold deposit in Northwest Ontario
- The company has also signed an agreement to settle certain outstanding accounts payable in the aggregate amount of $513,157.18
- Goldshore is an emerging Canadian-based gold development company
- Goldshore Resources Inc. (GSHR) is up 2.63 per cent, trading at C$0.195 per share at 9:45 am ET
Goldshore Resources (GSHR) is increasing the size of its previously announced brokered private placement to up to $6,000,000 gross proceeds.
The increase was in response to strong investor demand. Research Capital Corporation and Eventus Capital Corp., are conducting the offering as co-lead agents and joint bookrunners.
Financing Details
The offering consists of the following offered securities:
- units of the company at $0.17 per unit. Each unit comprises of one common share and one-half common share purchase warrant; and
- flow-through units at $0.195 per FT unit. Each FT unit comprises of one common share that will qualify as “flow-through shares” and one-half of one warrant.
Each warrant entitles the holder to acquire one additional common share at $0.25, for 24 months following the closing date.
The company has granted the agents an option to offer up to an additional 15 per cent of the offering, on the same terms as the offered securities. The agents’ may exercise the option in whole or in part at any time prior to the closing date of the offering.
Goldshore intends to use the net proceeds from the sale of units for working capital and future exploration work on its Moss Lake gold deposit in Northwest Ontario, Canada. It will use the gross proceeds from the issuance of FT Units for “Canadian Exploration Expenses”.
The company expects the offering to close on or about the week of April 12, 2023 and is subject to the receipt of all necessary approvals. All securities offered will be subject to a statutory hold period of four months.
Goldshore will pay the agents a commission of 6 per cent cash and issue 6 per cent compensation warrants exercisable for 24 months.
Securities for Debt Transaction
The company has also signed an agreement to settle certain outstanding accounts payable in the aggregate amount of $513,157.18.
Goldshore will issue 3,018,572 units at a deemed price of $0.17 per unit. The Debt Settlement units will have the same terms as the units issued in the offering.
The company is proposing to issue the Debt Settlement units to preserve cash to fund future operations. Goldshore’s board of directors believe that the Securities for Debt Transaction is necessary to provide the company with a clean balance sheet to attract new capital. It expects adequate hard dollar working capital into the second half of 2023.
All securities issued will be subject to a four month hold period and is subject to the approval of the TSX Venture Exchange.
About Goldshore
Goldshore is an emerging Canadian-based gold development company. It owns the Moss Lake Gold Project located in Ontario.
Wesdome Gold Mines Ltd. is currently a large shareholder of Goldshore with an approximate 22 per cent equity position.
Goldshore Resources Inc. (GSHR) is up 2.63 per cent, trading at C$0.195 per share at 9:45 am ET.