Mr. Ronald Coombes reports
PROVIDENCE GOLD MINES INC. CLOSES $1,250,56 PRIVATE PLACEMENT OVER SUBSCRIBED
Further to its news release of July 10, 2020, wherein Providence Gold Mines Inc. had increased the non-brokered private placement (NBPP) to $1.2-million, the company confirms that it has received regulatory approval and has closed the NBPP financing oversubscribed for total gross proceeds of $1,250,560. Three company insiders purchased three million shares in the private placement for proceeds of $240,000. The private placement, including the first tranche (see news related dated May 19, 2020), consists of 15,632,000 units, with each unit representing one common share at a price of eight cents per share and one share purchase warrant for the right to purchase one common share at a price of 15 cents per share for a period of 12 months, expiring on July 22, 2021.
Finders' fees will be paid in connection with the private placement.
Ron Coombes states,
"We are pleased with today's announcement and to move forward with our plans to advance our historically high-grade Providence group of gold mines."
The company is currently receiving bids (locally near the town of Sonora, Calif.) to grid auger drill the stockpile of historically milled material to further determine the volume of milled material which reportedly produced 225,000 ounces of gold until shut down due to a dispute in 1916.
The protocol is to assay at two-metre intervals and, once results are substantiated, then to bulk sample the material to determine the best recovery methods.
Brian Ray, master of science, professional geoscientist, head of exploration and a qualified person (as defined under National Instrument 43-101), has read and approved the technical information contained in this news release.
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