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Goldsource Mines Inc
Symbol GXS
Shares Issued 407,247,109
Close 2021-04-29 C$ 0.115
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Goldsource arranges $8-million bought deal

2021-04-29 18:19 ET - News Release

Mr. Steve Parsons reports

GOLDSOURCE ANNOUNCES C$8.0 MILLION BOUGHT DEAL PRIVATE PLACEMENT AND CONCURRENT SHARE CONSOLIDATION

Goldsource Mines Inc. has entered into an agreement with Cormark Securities Inc. and Sprott Capital Partners, pursuant to which the underwriters shall purchase 72.73 million units of the company at a price of 11 cents per unit, on a bought deal private placement basis, for aggregate gross proceeds to the company of approximately $8.0-million. The company has also granted the underwriters an option to sell up to an additional 10,909,500 units at the offering price up to the closing of the offering, which would increase the aggregate gross proceeds to approximately $9.2-million if exercised in full.

Each unit will consist of one common share of the company and one-half of one common share purchase warrant. Each warrant will entitle the holder to acquire one common share of the company at an exercise price of 14 cents for a period of 24 months following the closing of the offering.

The net proceeds from the offering will be used for continuing exploration and prefeasibility work at the Eagle Mountain gold project in Guyana, working capital, and general corporate purposes.

Van Eck Associates Corp. has committed to participate in the offering with a lead order of $5.0-million.

In connection with the offering, the company will pay to the underwriters a cash commission equal to 6.0 per cent of the gross proceeds from the sale of the units (including any proceeds in connection with the exercise of the option), other than in respect of any purchasers pursuant to a mutually agreed president's list (not to exceed $1.0-million), on which a cash fee of 3.0 per cent only shall be payable. In addition, the company shall issue to the underwriters such number of compensation warrants as is equal to 3.0 per cent of the number of units sold pursuant to the offering, except for any purchasers on the president's list on which such number of broker warrants as is equal to 1.5 per cent of the number of units sold pursuant to the offering shall be issued. Each broker warrant will be exercisable for one common share at an exercise price equal to the offering price for a period of 24 months following the closing of the offering.

The offering is scheduled to close on or about May 20, 2021, and is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory and other approvals, including the approval of the TSX Venture Exchange.

Following discussions with investors and in consideration of company initiatives, Goldsource is also announcing that it intends to complete a concurrent share consolidation on the basis of 10 existing common shares for one new consolidated common share, which the company anticipates completing on the closing of the offering. The consolidation is subject to the approval of the TSX-V. In accordance with the company's articles, the consolidation may be approved by the company's directors, and shareholder approval is not required. Currently, the company has 407,247,109 issued and outstanding common shares, and, assuming no additional common shares are issued prior to completion of the consolidation (including under the offering) upon completion of the consolidation, there will be 40,724,711 common shares on a postconsolidation basis outstanding. The offering is being conducted on a preconsolidation basis.

About Goldsource Mines Inc.

Goldsource Mines is a Canadian exploration company focused on the 100-per-cent-owned Eagle Mountain gold project in Guyana, South America. The company is led by an experienced management team, proven in making precious metals exploration discoveries and executing on phased project development in the Americas.

We seek Safe Harbor.

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