Plato Gold Corp. Announces Closing of Non-Brokered Private Placement for $350,000

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TORONTO, June 10, 2021 (GLOBE NEWSWIRE) -- Plato Gold Corp. (TSX-V: PGC) (“Plato” or the “Company”) is pleased to announce that further to its news release dated June 7, 2021, it has completed a non-brokered private placement for aggregate gross proceeds of $350,000 (the “Offering”). The Offering consisted of (i) 5,100,000 flow-through shares (“FT Shares”) at a price of $0.05 per FT Share for gross proceeds of up to $255,000; and (ii) 1,900,000 hard dollar units (“HD Units”) at a price of $0.05 per HD Unit for gross proceeds of $95,000.

Each HD Unit is composed of one common share in the capital of the Company (a “Common Share”) and one Common Share purchase warrant (a “Warrant”). Each Warrant will entitle the holder to purchase one Common Share (a “Warrant Share”) at a price of $0.07 per Warrant Share until the date which is twenty-four (24) months following the closing date of the Offering, whereupon the Warrants will expire. Each FT Share is composed of one Common Share issued on a flow-through basis within the meaning of the Income Tax Act (Canada) (the “Tax Act”).

The proceeds raised from the sale of the FT Shares will be used to incur “Canadian exploration expenses” that are “flow-through mining expenditures” (as such terms are defined in the Tax Act) to pay for assay results on over 2,000 meters of drill core from the Company’s Good Hope Niobium Project near Marathon, Ontario and to fund the Company’s other properties in Ontario, Canada. The proceeds raised from the sale of the HD Units will be used for general working capital purposes and for exploration expenses on the Company’s properties.

Certain insiders of the Company subscribed, directly or indirectly for an aggregate of 2,200,000 FT Shares and 1,100,000 HD Units pursuant to the Offering. Such participation is considered a “related party transaction” as such terms are 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 requirement to obtain formal valuation and minority shareholder approval as the fair market value of the participation in the Offering by the Insiders does not exceed 25% of the market capitalization of the Company, as determined in accordance with MI 61-101.