Mr. David Suda reports
GOLD TERRA RESOURCE CORP. ANNOUNCES C$6 MILLION BOUGHT DEAL FINANCING
Gold Terra Resource Corp. has entered into an agreement with a syndicate of underwriters led by BMO Capital Markets, under which the underwriters have agreed to buy, on bought deal basis, a combination of common shares and charity flow-through common shares to provide the company with gross proceeds of approximately $6-million. 10,000,000 Common Shares will be offered at a price of C$0.30 for gross proceeds of C$3 million. 8,000,000 Charity Flow-Through Common Shares will be offered at a price of C$0.415 for gross proceeds of approximately C$3.3 million. The Company has granted the Underwriters an option, exercisable at the offering price for a period of 30 days following the closing of the Offering, to purchase up to an additional 15% of Securities issued as Common Shares to cover over-allotments, if any. The Offering is expected to close on or about July 14, 2020 and is subject to Gold Terra receiving all necessary regulatory approvals.
The net proceeds from the sale of the Common Shares will be used to advance exploration at the Company's wholly-owned Yellowknife City Gold project, for working capital, and for general corporate purposes.
The gross proceeds from the sale of the Charity Flow-Through Common Shares will be used for expenditures which qualify as "Canadian exploration expenses" ("CEE") and "flow-through mining expenditures" both within the meaning of the Income Tax Act (Canada). The Company will renounce such CEE with an effective date of no later than December 31, 2020.
The Securities will be offered by way of a short form prospectus in each of the provinces of Canada excluding Quebec and the Common Shares may also be offered by way of private placement in the United States.
The YCG project encompasses 790 sq. km of contiguous land immediately north, south and east of the City of Yellowknife in the Northwest Territories. Through a series of acquisitions, Gold Terra controls one of the six major high-grade gold camps in Canada. Being within 10 kilometres of the City of Yellowknife, the YCG is close to vital infrastructure, including all-season roads, air transportation, service providers, hydro-electric power and skilled tradespeople. The YCG lies on the prolific Yellowknife greenstone belt, covering nearly 70 kilometres of strike length along the main mineralized shear system that host the former-producing high-grade Con and Giant gold mines. The Company's exploration programs have successfully identified significant zones of gold mineralization and multiple targets that remain to be tested which reinforces the Company's objective of re-establishing Yellowknife as one of the premier gold mining districts in Canada.
We seek Safe Harbor.
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