Evergold Announces Closing of Previously Upsized C$8,000,000 Bought Deal Private Placement Financing with a Lead Order from Palisades Goldcorp - Seite 2
The proceeds raised from the sale of FT Units will be used to incur “Canadian exploration expenses” that are “flow-through mining expenditures” (as such terms are defined in the Tax Act) on the Company’s flagship Snoball and Golden Lion properties in northern British Columbia, Canada. The net proceeds raised from the sale of HD Units will be used for general working capital purposes and for exploration on the Company’s B.C. and Nevada properties.
The securities issued pursuant to the Offering have a hold period of four months and one day from closing of the Offering. The Offering remains subject to the receipt of final approval of the TSX Venture Exchange.
Related Party Transaction
In connection with the Offering, Darwin Green has acquired 20,000 FT Units and C.J. Greig Holdings Ltd., a company controlled by Charles Greig, has acquired 125,000 HD Units. These are “related party transactions” as such term is defined by Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions (“MI 61-101”), requiring the Company, in the absence of exemptions, to obtain a formal valuation for, and minority shareholder approval of, the “related party transactions”. The Company is relying on an exemption from the formal valuation and minority shareholder approval requirements set out in MI 61-101 as the fair market value of the participation in the Offering by Mr. Green and C.J. Greig Holdings Ltd. does not exceed 25% of the market capitalization of the Company, as determined in accordance with MI 61-101.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
About Palisades Goldcorp
Palisades Goldcorp is Canada’s resource focused merchant bank. Palisades’ management team has a demonstrated track record of making money and is backed by many of the industry’s most notable financiers. With junior equities valued at generational lows, management believes the sector is on the cusp of a major bull market move. Palisades is positioning itself with significant stakes in undervalued companies and assets with the goal of generating superior returns.