Snowline Gold Corp said it has completed the second tranche of its previously announced non-brokered private placement, issuing 2,342,293 units of the company at a price of C$1.25 per unit, for aggregate gross proceeds of C$2,927,866.
The gross proceeds from the issue and sale of units will be used to support the advancement of exploration on the company's Yukon Territory mineral properties and for general and working capital purposes.
Each unit is comprised of one common share of the company and one-half of one common share purchase warrant, with each whole warrant being exercisable for one common share of the company at an exercise price of C$2.50 until August 2, 2024.
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The unit component is a "hard dollar" (i.e. non-flow through) raise, and the warrants are valid for two years. Flow-through shares do not involve warrants, and they are supported by strong back-end Snowline investors who do not receive the flow-through benefits.
All securities issued in connection with the second tranche of the offering are subject to a hold period of four months and one day from the closing of the second tranche of the offering, in accordance with applicable Canadian securities laws, expiring on December 3, 2022.
Crescat Capital LLC subscribed to the offering to maintain its pro-rata interest pursuant to its pre-emptive right granted under the terms of an investment agreement with Snowline, to participate in certain equity offerings undertaken by the company. Crescat has beneficial ownership of, control or direction over, directly or indirectly, more than 10% of the issued and outstanding common shares of the company. Accordingly, the offering and the issuance of the units insofar as they involve Crescat constitutes a related party transaction for the purposes of Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions (MI 61-101).
The company said no finder's fees have been nor will be paid in connection with the offering.
The securities issued under the offering have not been and will not be registered under the US Securities Act of 1933, as amended, and were not to be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.
Snowline Gold is a Yukon Territory-focused gold exploration company with a seven-project portfolio covering more than 127,000 hectares (ha). The company is exploring its flagship more than 85,000 ha Rogue and Einarson gold projects in the highly prospective yet underexplored Selwyn Basin.
Snowline's project portfolio sits within the prolific Tintina Gold Province, host to multiple million-ounce-plus gold mines and deposits including Kinross' Fort Knox mine, Newmont's Coffee deposit, and Victoria Gold's Eagle Mine.
The company's first-mover land position and extensive database provide a unique opportunity for investors to be part of multiple discoveries and the creation of a new gold district.
Contact the author at jon.hopkins@proactiveinvestors.com