Avidian Gold Provides Update on Non-Brokered $2.5M Private Placement Including Strategic Investment by Eric Sprott
TORONTO, July 10, 2020 (GLOBE NEWSWIRE) -- Avidian Gold Corp. (“Avidian” or the “Company”) (TSX-V: AVG) wishes to provide an update to the previously announced (see July 6, 2020 news release) private placement of units of the Company (“Units”) at $0.10 per Unit for gross proceeds of up to $2,500,000 (the “Offering”). Each Unit will consist of one common share of the Company (a “Common Share”) and one Common Share purchase warrant (a “Warrant”) exercisable into a Common Share at a price of $0.14 for twenty-four (24) months following the issuance of Warrants. The terms of the Warrants restrict the exercise of the Warrants in a manner that causes the warrant holder to hold 20% or more of Common Shares without having previously obtained required approvals in accordance with the policies of the TSX Venture Exchange.
The Company advises that it has now received subscriptions for the entirety of the Offering, including a subscription from Mr. Eric Sprott. The Company expects to close the Offering next week.
The net proceeds from the Offering shall be primarily used for the development of Avidian’s mineral properties and for general and administrative expenses.
The Offering is conditional upon receipt of required regulatory approvals, including the final approval of the TSX Venture Exchange. The securities issued pursuant to the Offering will be subject to a four months and a day statutory hold period in accordance with applicable Canadian securities laws.
Pursuant to the Offering, Mr. Sprott through 2176423 Ontario Ltd., a corporation that is beneficially owned by him, will acquire 20,000,000 Units for a total consideration of $2,000,000. Subsequent to the closing of the Offering, Mr. Sprott will beneficially own or control 20,000,000 Common Shares and 20,000,000 Warrants representing approximately 16.75% of the issued and outstanding Common Shares on a non-diluted basis and approximately 28.69% of the issued and outstanding Common Shares on a partially diluted basis assuming exercise of the Warrants. Prior to the Offering, Mr. Sprott did not beneficially own or control any securities of the Company.
The Units were acquired by Mr. Sprott for investment purposes. Mr. Sprott has a long-term view of the investment and may acquire additional securities of Avidian including on the open market or through private acquisitions or sell securities of Avidian including on the open market or through private dispositions in the future depending on market conditions, reformulation of plans and/or other factors that Mr. Sprott considers relevant from time to time. For the purposes of this notice, the address of Mr. Sprott is 200 Bay Street, Suite 2600, Royal Bank Plaza, South Tower, Toronto, Ontario M5J 2J1.