Solstice Gold Corp. (TSX-V:SGC) has said it intends to complete a financing by way of a non-brokered private placement for aggregate proceeds of $1.1 million, with participation in the offering being led by members of the company's management team, board of directors and a new institutional investor.
The company said the placement proceeds will be used to fund exploration programs and for corporate and working capital.
In a statement, Mike Timmins, Solstice Gold CEO said: "Current drilling at the Red Lake Extension (RLX) project is tracking to plan and given the size of the property position, number of developed target areas and early observations from core logging, we will expand the program and continue to focus our activities on this under-explored extension of the camp."
“We are fortunate to have a tremendous level of support from our board of directors and it's exciting to be able to attract new investment to fuel our goal of making a new discovery in Red Lake," he added.
READ: Solstice Gold welcomes early indications from first phase drilling at Red Lake Extension (RLX) project
The offering will consist of common shares of the company that qualify as flow-through (FT) shares for purposes of the Income Tax Act (Canada) at a price of $0.13 per national FT share, as well as common shares of the company to residents in Ontario that qualify as FT shares for purposes of the Income Tax Act (Canada) at a price of $0.17 per Ontario FT share. In addition, the company will issue units at a price of $0.12 per unit, each comprised of one common share of the company and one warrant exercisable for one common share at an exercise price of $0.17 for a period of 18 months from the closing date of the offering.
The gross proceeds from the national FT shares offering will be used to fund exploration programs qualifying as 'Canadian Exploration Expenses' and 'flow-through mining expenditures', while the proceeds raised from the Ontario FT shares will be used to fund exploration programs qualifying as 'Canadian Exploration Expenses' and 'flow-through mining expenditures' at the company's mining projects in Ontario. Funds raised from the units will be used for general corporate and working capital, Solstice Gold said.
The offering is expected to close on or before August 19, 2022, and is subject to receipt of all applicable regulatory approvals, including the approval of the TSX Venture Exchange (TSXV).
The national FT shares will be offered to Canadian residents other than in Ontario, while the Ontario FT shares will be offered to residents of Ontario and the units will be offered to residents of Canada and other jurisdictions as determined by the company’s board.
The securities issued under the offering will be subject to a statutory hold period of four months and one day from the closing date.
The securities have not been and will not be registered under the United States Act of 1933, as amended or any state securities laws and may not be offered or sold within the US or to US persons (as such term is defined in Regulation S under the US Securities Act) unless registered under the US.
Solstice is an exploration company with quality, district-scale gold projects in established mining regions of Canada. Its 180-square kilometres (km) RLX and New Frontier projects are located at the northwestern extension of the prolific Red Lake Camp in Ontario and approximately 45 km from the Red Lake Mine Complex owned by Evolution Mining.
The company is funded for phase one drilling at RLX. Its newly formed 322-square km Atikokan Gold Project is approximately 23 km from the Hammond Reef Gold Project owned by Agnico Eagle Mines (TSX:AEM) Limited and is fully funded for a robust field program in 2022.
Its Qaiqtuq Gold Project which covers 886 square km with certain other rights covering an adjacent 683 square km hosts a 10-square km high-grade gold boulder field, is fully permitted and hosts multiple drill-ready targets. Qaiqtuq is located in Nunavut, only 26 km from Rankin Inlet and approximately 7 km from the Meliadine Gold Mine owned by Agnico Eagle Mines Limited.
In October 2021, Solstice Gold purchased an extensive gold and battery metal royalty and property portfolio of over 80 assets. Approximately $1.2 million in value and two new royalties have been generated since the acquisition.
Contact the author at jon.hopkins@proactiveinvestors.com