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Amarillo Gold Corp
Symbol C : AGC
Shares Issued 114,455,208
Close 2019-05-14 C$ 0.19
Recent Sedar Documents

Amarillo Gold arranges $5-million financing

2019-05-15 07:44 ET - News Release

Mr. Mike Mutchler reports

AMARILLO ANNOUNCES NON-BROKERED PRIVATE PLACEMENT

Amarillo Gold Corp. is proposing to complete a non-brokered private placement of units at a subscription price of 20 cents per unit for aggregate gross proceeds to the company of up to $5-million. Each unit comprises one common share and one common share purchase warrant. Each warrant entitles the holder to purchase one additional common share at an exercise price of 30 cents for a period of 24 months following the date of issue, subject to customary adjustment provisions.

As at the date hereof, the company has received commitments from arm's-length and non-arm's-length lead investors in respect of part of the private placement.

The company intends to use the net proceeds from the private placement for advancing the company's Mara Rosa project by continuing the feasibility study, and applying for the licence to install; and for general corporate purposes.

In connection with the private placement, the company may pay a maximum 6-per-cent finder's fee in cash on a portion of the funds to be raised, subject to all necessary regulatory approvals.

The company intends to close the private placement on or about May 27, 2019, subject to receipt of all necessary regulatory approvals, including the approval of the TSX Venture Exchange. All securities issued pursuant to the private placement will be subject to, among other things, a hold period of four months and one day in accordance with applicable securities laws.

About Amarillo Gold Corp.

Amarillo is developing an open-pit gold resource at its Mara Rosa project in the mining-friendly jurisdiction of Goias state in Brazil. The Mara Rosa project, also known as the Posse deposit, was awarded its main (LP) permit which provides the social and environment permission to mine. Amarillo is progressing toward obtaining an installation permit (LI). Based on the National Instrument 43-101 prefeasibility study 2018 (PFS 2018) update filed on SEDAR on Nov. 21, 2018, the Mara Rosa project contains estimated 513,000 ounces of gold in the proven category from 9.6 million tonnes at 1.65 grams per tonne Au and 574,000 ounces gold in the probable category from 14.2 Mt at 1.26 g/t Au, for total estimated reserves of 1,087,000 ounces from 23.8 Mt at 1.42 g/t Au.

Mike Mutchler, president and chief executive officer of the company, is a qualified person as defined by NI 43-101 guidelines, and has reviewed and approved the scientific and technical disclosure relating to the PFS 2018 in this section of the news release.

We seek Safe Harbor.

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