Integra Gold (ICG-V) increasing the total offering to $4.35-million from $3.2 million.
Aug 28, 2013 - News Release
"We are encouraged by the high level of investor interest in this offering, enabling the Company to further advance exploration and development initiatives at the Lamaque Gold Project," commented Company President and CEO, Stephen de Jong. "There are currently two drill rigs operating at the project, with a third to be added this winter. In the near future we anticipate announcing the results of an updated resource estimate, completing an environmental baseline study, and publishing the first PEA completed on the project. The Company is sufficiently financed to deliver on these objectives."In the second tranche the Company issued 1,456,405 flow through shares (the "FT Shares") and 1,818,500 non-flow through units (the "NFT Units") for a total of 3,274,905 shares or units and gross proceeds of $542,210. Including the first tranche, to date total FT Shares issued are 15,343,702 and total NFT Units issued are 4,438,500, for total gross proceeds to date of $3,504,360. All shares are subject to a statutory four month hold period which expires on December 10, 2013 and December 27, 2013 for the first and second tranches, respectively. To date total Finder's fees are payable as to $232,603 in cash and 1,311,602 in compensation options.
The Offering consists of FT Shares and NFT Units on a best efforts basis at a price of $0.185 per FT Share and $0.15 per NFT Unit. Each FT Share consists of one flow through common share and no warrant. Each NFT Unit consists of one common share and one-half of one non-transferable common share purchase warrant. Each whole Non-Flow Through warrant will entitle the holder to purchase one common share at an exercise price of $0.23 for 24 months following completion of the Offering. The forced exercise clause has been revised such that if the Company's Shares trade on the TSX Venture Exchange at a weighted average price of greater than $0.40 for any ten consecutive trading day period the Company may, on written notice to the holders of the Warrants, reduce the exercise period of the Warrants to a date that is not less than 30 days from the date of the notice.
Certain directors and officers of the Company have acquired securities under the private placement. Such participation is considered to be a "related party transaction" as defined under Multilateral Instrument 61-101 ("MI 61-101"). The transaction will be exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as neither the fair market value of any shares issued to or the consideration paid by such persons will exceed 25% of the Company's market capitalization.
The proceeds from the issuance of the FT Shares will qualify as Canadian and/or Quebec exploration expenses which will be renounced to investors no later than December 31, 2013. The Company intends to use the net proceeds of the Offering primarily for expenditures on the Company's Lamaque property as well as for general working capital.
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