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GFG Resources Inc
Symbol GFG
Shares Issued 109,207,016
Close 2020-04-21 C$ 0.205
Recent Sedar Documents

GFG Resources arranges $5-million placement

2020-04-21 07:28 ET - News Release

Mr. Brian Skanderbeg reports

GFG ANNOUNCES NON-BROKERED PRIVATE PLACEMENT OF UP TO C$5.0 MILLION WITH ALAMOS GOLD AS STRATEGIC INVESTOR

GFG Resources Inc. has arranged a non-brokered private placement to raise gross proceeds of up to $5.0-million. As part of the offering,Alamos Gold Inc. has committed to purchase securities under the offering to obtain a 9.9-per-cent interest in the company upon completion of the offering.

The offering will consist of any combination of 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 29.1 cents per share and non-flow-through common shares of the company at a price of 19 cents per share, subject to maximum aggregate gross proceeds of $5.0-million.

"We are excited to welcome Alamos as our strategic partner," stated Brian Skanderbeg, president and chief executive officer of GFG. "Alamos's commitment and investment in our team and projects validates our belief in the prospectivity of our land position and allows us to take a more aggressive approach. Following the closing of the financing, we look forward to outlining an aggressive drill program that we anticipate beginning in the third quarter."

In connection with the offering, Alamos will be granted certain participation rights to maintain its pro rata ownership interest in the company.

The gross proceeds raised from the sale of the 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 non-flow-through shares will be used for general working capital purposes.

The offering is scheduled to close on or about May 5, 2020, and is subject to certain conditions, including, but not limited to, the execution of definitive documentation and 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 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 1 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., Canada.

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