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GFG Resources Inc
Symbol GFG
Shares Issued 109,207,016
Close 2020-04-29 C$ 0.22
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GFG Resources increases financing to $6-million

2020-04-29 09:00 ET - News Release

Mr. Brian Skanderbeg reports

GFG ANNOUNCES INCREASE TO PREVIOUSLY ANNOUNCED PRIVATE PLACEMENT TO APPROXIMATELY C$6.0 MILLION

GFG Resources Inc. intends to increase the size of its previously announced non-brokered private placement financing (see news release dated April 21, 2020) to an aggregate total of approximately $6.0-million to accommodate demand from existing and new shareholders. As previously disclosed, 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 29.07 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 $6.0-million.

"We are very grateful for the strong demand and support from existing and new shareholders in the offering," stated Brian Skanderbeg, president and chief executive officer of GFG. "The strategic investment from Alamos is an important endorsement for the Pen gold project and our team. Following the close of the offering, GFG will be well positioned with a strong balance sheet to aggressively follow up on our high-grade discovery at the Nib prospect and other highly prospective targets on our district-scale land package located 40 kilometres west of Timmins."

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 FT 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 NFT shares will be used for general working capital purposes.

The offering is scheduled to close on or about May 6, 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.

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., Canada. The Pen and the Dore gold projects have similar geological settings that host most of the gold deposits found in the Timmins gold camp which have produced over 70 million ounces of gold. The company also owns 100 per cent of the Rattlesnake Hills gold project, a district-scale gold exploration project located approximately 100 kilometres southwest of Casper, Wyo.

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