P2 Gold Closes Second Tranche of Non-Flow-Through Financing

NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

VANCOUVER, British Columbia, May 31, 2023 (GLOBE NEWSWIRE) -- P2 Gold Inc. (“P2” or the “Company”) (TSX-V:PGLD) (OTCQB:PGLDF) reports that it has closed the second tranche (the “Second Tranche”) of its non-brokered private placement of non-flow-through units (the “Units”) at $0.27 per Unit, for gross proceeds of up to approximately $1.5 million (the “Offering”), previously announced on April 5, 2023 and May 4, 2023. The Second Tranche consisted of 785,632 Units for gross proceeds of approximately $212,000.

Each Unit consists of one non-flow-through common share in the capital of the Company and one non-flow-through common share purchase warrant (a “Warrant”). Each Warrant entitles the holder to purchase one additional non-flow-through common share in the capital of the Company at an exercise price of $0.40 per common share for a period of two years from the date of issue (the “Expiry Time”), provided that, if after four months from the date of issue, the closing price of the common shares of the Company on the TSX Venture Exchange (the “Exchange”) is equal to or greater than $0.80 for a period of 10 consecutive trading days at any time prior to the Expiry Time, the Company will have the right to accelerate the Expiry Time by giving notice to the holders of the Warrants by news release or other form of notice permitted by the certificate representing the Warrants that the Warrants will expire at 4:30 p.m. (Vancouver time) on a date that is not less than 15 days from the date notice is given.

The proceeds of the Offering will be used to fund exploration and engineering expenditures and for general corporate purposes.

All securities issued pursuant to the Second Tranche are subject to a four-month hold period expiring on October 1, 2023. The securities offered pursuant to the Offering have not been and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of such Act.

Insiders of the Company subscribed for 92,593 Units of the Second Tranche. The issuance of Units to insiders is considered a related party transaction subject to Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions. The Company relied on exemptions from the formal valuation and minority shareholder approval requirements provided under sections 5.5(a) and 5.7(1)(a) of Multilateral Instrument 61-101 on the basis that the participation in the Offering by the insiders did not exceed 25% of the fair market value of the company’s market capitalization.