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Victoria Gold arranges $20-million bought deal offering

2020-04-22 16:45 ET - News Release

Mr. John McConnell reports


Victoria Gold Corp. has entered into an agreement with a syndicate of underwriters led by BMO Capital Markets and PI Financial Corp., under which the underwriters have agreed to buy on a bought deal basis 2,615,000 common shares at a price of $7.65 per common share for gross proceeds of approximately $20-million. The company has granted the underwriters an option, exercisable at the offering price for a period of 30 days following and including the closing of the offering, to purchase up to an additional 15 per cent of the offering to cover overallotments, if any. The offering is expected to close on or about May 8, 2020, and is subject to Victoria receiving all necessary regulatory approvals.

The net proceeds of the offering will be used to continue ramp-up of operations of the Eagle gold mine on the Dublin Gulch property and for general corporate purposes.

The common shares will be offered by way of a short-form prospectus in all of the provinces of Canada, other than Quebec, and may also be offered by way of private placement in the United States.

Q1 financial statements and management's discussion and analysis for the quarter ended March 31, 2020

The company intends to utilize the temporary relief announced by the Ontario Securities Commission under Ontario Instrument 51-102 (and similar exemptions provided by other securities regulators) on March 23, 2020. The instrument provides a 45-day extension for periodic filings including financial statements and management's discussion and analysis. Securities regulators in other Canadian provinces have issued corresponding exemption orders.

In accordance with Section 4.4 of National Instrument 51-102, the company's Q1 financial statements and MD&A are due to be filed on the 45th day after March 31, 2020, the end of the company's most recently completed financial quarter. Due to the business restrictions and operational challenges resulting from the outbreak of the COVID-19 pandemic (including accommodating the work schedules of the company's external advisers and consultants), the company will rely on the extension and file its Q1 financial statements and MD&A at its earliest opportunity, which is expected to occur in early June, 2020. Accordingly, as required by the conditions of the extension, the company's management and other insiders will be subject to a trading blackout that reflects the principles in Section 9 of National Policy 11-207 until its financial statements are filed.

We seek Safe Harbor.

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