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Plato Gold (TSXV:PGC) up over 16pc on 400K private placement

Mining
CDX:PGC
03 November 2020 14:45 (EDT)

Mining company Plato Gold (PGC) is planning to conduct a non-brokered private placement for up to C$400,000 in proceeds.

The company intends to issue up to 8 million of its units, at a price of five cents each. The units will all contain one common share in Plato Gold, and one common share purchase warrant each.

Each warrant will allow the holder to buy one additional common share in the company, for ten cents a share. The warrants are exercisable within 36 months of the offering’s closing date, at which point they will expire.

However, this is subject to certain potential changes in Plato Gold’s share price on the TSX Venture Exchange. If the weighted average trading price of the company’s common shares close at a minimum of ten cents each for a consecutive five trading days, Plato Gold may accelerate the warrants’ expiry date. 

Should this occur, the company will provide notice to the holders of warrants about the accelerated expiry date. 

Plato Gold will primarily use the proceeds of the private placement for activities on two of its current properties. Specifically, the money will fund drilling on the company’s Holloway gold project in Ontario, and preparations of its Lolita property in Santa Cruz, Argentina.

Some funds will also go towards Plato Gold’s general working capital purposes.

The company expects that its offering will close some time around November 30, 2020.

Plato Gold (PGC) is up 16.67 per cent and is trading for 3.5 cents per share, as of 1:26pm EST.

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