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GFG Resources Inc
Symbol GFG
Shares Issued 92,814,648
Close 2019-09-27 C$ 0.18
Recent Sedar Documents

GFG Resources arranges $3.7-million private placement

2019-09-30 10:02 ET - News Release

Mr. Brian Skanderbeg reports

GFG ANNOUNCES NON-BROKERED PRIVATE PLACEMENT FINANCING OF UP TO C$3.7 MILLION

GFG Resources Inc. has arranged a non-brokered private placement to raise gross proceeds of up to $3.7-million.

The offering will consist of any combination of (i) units of the company at a price of 18 cents per unit; (ii) common shares of the company that will qualify as flow-through shares for the purposes of the Income Tax Act (Canada) at a price of 22 cents per flow-through share; and (iii) charity units of the company at a price of 27.5 cents per charity unit, subject to maximum aggregate gross proceeds of $3.7-million. Each unit shall consist of one common share of the company (which shall not be a flow-through share) and one-half of one share purchase warrant, with each whole share purchase warrant entitling the holder thereof to acquire one additional common share of the company (which shall not be a flow-through share) at an exercise price of 27 cents for a period of 24 months from the date of issuance. Each charity unit shall consist of one flow-through share and one-half of one warrant.

The gross proceeds raised from the sale of the flow-through shares and charity flow-through shares will be used for exploration activities in Ontario that will qualify as Canadian exploration expenses (within the meaning of the Income Tax Act (Canada)). The net proceeds raised from the sale of the units and the warrants comprising, in part, the charity units, will be used for exploration activities on the company's projects in Wyoming and Ontario as well as for general working capital purposes.

The offering is scheduled to close on or about Oct. 11, 2019, and is subject to certain conditions, including, but not limited to, the receipt of all necessary approvals, including the approval of the TSX Venture Exchange. The offering is being made by way of private placement in Canada and such other jurisdictions as the company may determine. The securities sold will not be offered or sold in the United States and will each be subject to a hold period expiring four months and one day from their issuance.

About GFG Resources Inc.

GFG Resources is a North American precious metals exploration company focused on district-scale gold projects in tier-one mining jurisdictions, Ontario and Wyoming. In Ontario, the company owns 100 per cent of the Pen and Dore gold projects, two large and highly prospective gold properties west of the prolific gold district of Timmins, Ont. In Wyoming, the company has partnered with Newcrest Mining Ltd. through an option and earn-in agreement to advance the Rattlesnake Hills gold project.

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