GoGold Resources (GGD-T) Nov 12, '14 is pleased to announce that it has entered into an agreement with a syndicate of underwriters pursuant to which they have agreed to purchase, on a bought deal basis, 13,333,500 common shares at a price of C$1.50 per share for gross proceeds to the Company of approximately C$20 million. The Offering will be conducted through a syndicate of underwriters co-led by Cormark Securities Inc. and BMO Capital Markets and including PI Financial Corp.
In addition, the Company has agreed to grant to the underwriters an option to purchase up to an additional 15% of the number of Shares sold under the Offering at a price of C$1.50 per Share, on the same terms and conditions as the Offering, exercisable at any time, in whole or in part, until the date that is 30 days following the closing of the Offering. In the event that the option is exercised in its entirety, the aggregate gross proceeds of the Offering to GoGold will be approximately C$23 million.
The net proceeds of the Offering will be used for the advancement and the development of the Company's mineral properties in Mexico and for working capital and general corporate purposes.
The Common Shares to be issued under the Offering will be offered by way of a short form prospectus in all of the provinces of Canada, other than the Province of Quebec.
The Offering is scheduled to close on or about December 3, 2014 and is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory and other approvals including the approval of the Toronto Stock Exchange and the securities regulatory authorities.
The securities offered have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act") or any U.S. state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, United States persons absent registration or any applicable exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws. This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
GoGold Resources Inc.
Terence F. Coughlan, President and CEO
Sean Tufford, Vice President, Corporate Development
902 482-1998
902 442-1898 (FAX)
Email: sean@gogoldresources.com
www.gogoldresources.com |
