ALLEGIANT Announces $3,000,000 Private Placement

VANCOUVER, British Columbia, May 26, 2020 (GLOBE NEWSWIRE) -- Allegiant Gold Ltd. (“ALLEGIANT”) (AUAU: TSX-V) (AUXXF: OTCQX) is pleased to announce that it has arranged a non-brokered private placement to raise up to $3,000,000. The placement will consist of 12,000,000 units at a price of $0.25 per unit (the “Offering”), wherein each unit will be comprised of a common share of ALLEGIANT and one half of a share purchase warrant. Each whole share purchase warrant will entitle the holder to acquire an additional common share of ALLEGIANT at a price of $0.40 for a period of 18 months from the date of closing of the Offering.

Proceeds of the Offering will be used to continue exploration on the Company’s flagship Eastside property as well as general working capital. Specifically, the Company will be focused on expansion of the permitted area around the original pit zone with a goal of resource expansion, testing new high priority target areas to the west and east of the original resource and further increasing investor awareness of ALLEGIANT and the Eastside project.

Closing of the Offering is anticipated to occur in June 2020 and is subject to approval of the TSX Venture Exchange. All shares issued in connection with the Offering will be subject to a four month hold period. Finders’ fees may be payable in connection with the Offering. 

ABOUT ALLEGIANT
ALLEGIANT owns 100% of 10 highly-prospective gold projects in the United States, 7 of which are located in the mining-friendly jurisdiction of Nevada. Three of ALLEGIANT’s projects are farmed-out, providing for cost reductions and cash-flow. ALLEGIANT's flagship, district-scale Eastside project hosts a large and expanding gold resource and is located in an area of excellent infrastructure. Preliminary metallurgical testing indicates that both oxide and sulphide gold mineralization at Eastside is amenable to heap leaching.

QUALIFIED PERSON
Andy Wallace is a Certified Professional Geologist (CPG) with the American Institute of Professional Geologists and is the Qualified Person under NI 43-101, Standards of Disclosure for Mineral Projects, who has reviewed and approved the scientific and technical content of this press release.

The NI 43-101 updated resource estimate for the Eastside gold-silver deposit was prepared under the direction of Steven J. Ristorcelli, CPG of MDA, a Qualified Person under NI 43-101, who has reviewed and consented to the information in this news release that relates to the reported resources.