Avidian Gold Announces Closing of First Tranche of Private Placement

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TORONTO, ON / ACCESSWIRE / December 2, 2022 / Avidian Gold Corp. ("Avidian" or the "Company") (TSXV:AVG) is pleased to announce to announce that it has closed the first tranche (the "First Tranche") of its non-brokered private placement offering of units of the Company (the "Units") for gross proceeds of up to $500,000 (the "Offering"), previously announced on October 17, 2022 and November 25, 2022. An aggregate of 5,378,715 Units were sold under the First Tranche at a price of C$0.035 per Unit (the "Issue Price"), for total gross proceeds of $188,258.

Each Unit is comprised of one common share of the Company (a "Common Share") and one Common Share purchase warrant (a "Warrant"). Each Warrant entitles the holder thereof to acquire one Common Share at an exercise price of $0.06 per Common Share (a "Warrant Share") for a period of twenty-four (24) months following the closing of the First Tranche. The second tranche of the Offering (the "Second Tranche") is expected to close on or before December 15, 2022.

It is expected that approximately 68% of the net proceeds from First Tranche of the Offering will be used to pay state claim fees on the Corporation's mineral properties in Alaska and Nevada, 11% of the net proceeds from First Tranche of the Offering will be used for the exploration and development of Avidian's advanced-stage gold & gold-copper mineral properties in Alaska and Nevada and the remaining 21% for general and administrative expenses. The expected use of the aggregate net proceeds of Offering will be provided in the press release announcing the closing of the Second Tranche of the Offering. It is not expected that any of the net proceeds of the Offering will be used for payments to Non-Arm's Length Parties (as defined in the policies of the TSX Venture Exchange (the "TSXV")) of the Company nor to any persons conducting Investor Relations Activities (as defined in the policies of the TSXV).

Certain insiders of the Company (the "Insiders") acquired an aggregate of 1,485,715 Units under the First Tranche of the Offering. The participation of the Insiders in the Offering constitutes a "related party transaction" as defined under Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Company is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 in respect of such insider participation because neither the fair market value of the Offering nor the fair market value of the consideration for the Units paid by the Insiders exceeds 25% of the Company's market capitalization.