10:33:39 EDT Fri 29 Mar 2024
Enter Symbol
or Name
USA
CA



G4G Capital Corp
Symbol GGC
Shares Issued 39,725,986
Close 2016-12-05 C$ 1.15
Market Cap C$ 45,684,884
Recent Sedar Documents

G4G Capital to sell $14.52M in shares to Agnico Eagle

2016-12-05 23:53 ET - News Release

Also News Release (C-AEM) Agnico Eagle Mines Ltd

Mr. David D'Onofrio of G4G Capital reports

G4G CAPITAL CORP. (TO BE RENAMED WHITE GOLD CORP.) ANNOUNCES STRATEGIC INVESTMENT BY AGNICO EAGLE AND PRIVATE PLACEMENT

Agnico Eagle Mines Ltd. has entered into a share purchase agreement to make a strategic investment pursuant to which Agnico Eagle has agreed to purchase such number of common shares of G4G Capital Corp. to be renamed White Gold Corp., equal to 19.93 per cent of the total number of issued and outstanding common shares, after giving effect to the private placement (as defined below), at a price of $1.20 per common share (the purchase price). Assuming the private placement is fully subscribed, Agnico Eagle will purchase 12.1 million common shares for gross proceeds of $14.52-million.

Concurrently with the strategic placement, the company intends to complete an offering of up to an additional 2.9 million common shares on a non-brokered private placement basis, at the purchase price, for aggregate gross proceeds of up to an additional $3.48-million. Purchasers of the additional placement will include Rob McEwen, Pat DiCapo (who currently owns, directly or indirectly, approximately 31 per cent of the common shares), Shawn Ryan and other insiders of the company. The total gross proceeds raised in the private placement are expected to be $18-million.

The company intends to use the proceeds from the private placement, together with its current cash on hand: (i) to fully finance the company's proposed three-year exploration program aggregating approximately $15-million; (ii) exercise the option to complete the acquisition of 100 per cent of the 21 properties, comprising approximately 12,301 quartz claims located in the White Gold district of the Yukon Territory from Mr. Ryan and Wildwood Exploration Inc.; and (iii) for general working capital purposes.

David D'Onofrio, president and chief executive officer of the company, stated: "We are very excited to welcome Agnico Eagle as a strategic investor and partner in White Gold. Agnico Eagle is an experienced leader in the precious metals sector with a successful track record of identifying and building quality assets globally. Agnico Eagle's investment recognizes the potential to advance the company towards being a key player in the White Gold district. The proceeds from the private placement allow us to fully fund our proposed three-year exploration program, to aggressively explore several of our targets, which we believe have the potential to host a significant gold system. The program contemplates a total of approximately 20,000 metres of drilling per year for the next three years (for a total of approximately 60,000 metres of drilling)."

Upon closing of the strategic placement, the company and Agnico Eagle will enter into an investor rights agreement pursuant to which, subject to certain conditions, Agnico Eagle will have the right to participate in any future equity offerings by the company to maintain its 19.93-per-cent interest in the company and to nominate one person (and in the case of an increase in the size of the board of directors of the company to 10 or more directors, two persons) to the board of directors of the company, the company will have a right to designate a purchaser in the event that Agnico Eagle wishes to sell more than 5 per cent of its common shares, and Agnico Eagle will be subject to a two-year standstill, which will prohibit Agnico Eagle from taking certain actions, including acquiring more than 19.99 per cent of the issued and outstanding common shares, subject to certain exceptions.

The closing of the private placement is expected to occur on or about Dec. 13, 2016, and is subject to certain conditions, including obtaining the approval of the TSX Venture Exchange. The common shares issuable pursuant to the private placement will be subject to a statutory hold period of four months and one day.

We seek Safe Harbor.

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