Mr. Kevin Bottomley reports
KING'S BAY ANNOUNCES $750,000 NON-BROKERED PRIVATE PLACEMENTS FINANCING
King's Bay Gold Corp. has arranged a non-brokered, non-flow-through private placement financing for gross proceeds of $500,000 and a non-brokered, flow-through private placement financing for gross proceeds of $250,000.
The non-flow-through private placement will consist of the issuance of five million units of the company, at 10 cents per unit for gross proceeds of $500,000, with each unit consisting of one common share of the company and one non-transferable common share purchase warrant. Each warrant will entitle the holder to purchase one common share of the company at a price of 15 cents for a period of 24 months following the closing date.
The flow-through private placement will consist of the issuance of two million flow-through shares of the company, at 12.5 cents per flow-through share for gross proceeds of $250,000. The private placement is subject to the approval of the TSX Venture Exchange. All the securities issued pursuant to the private placements will be subject to a restricted period of four months and one day from the date of closing. There may be a finder's fee payable in connection with this placement.
All or a portion of the offering may be completed pursuant to Multilateral CSA Notice 45-318, prospectus exemption for certain distributions, through an investment dealer and the corresponding instruments, orders and rules implementing CSA 45-318 in the participating jurisdictions.
In order for the company to be able to rely on the investment dealer exemption, each subscriber must purchase the shares as principal and obtain advice regarding the suitability of the investment from a person that is registered as an investment dealer in the jurisdiction in which the subscriber is resident.
The company intends to use the proceeds of the private placements as follows: $450,000 on exploration expenditures, $100,000 on salaries, $50,000 on legal, accounting and regulatory fees, $100,000 on unallocated working capital, and $50,000 on travel and promotion.
We seek Safe Harbor.
© 2021 Canjex Publishing Ltd. All rights reserved.