Algold Resources (ALG-V) July 19, '16 announces the closing of its previously-announced private placement financing conducted on a bought deal basis through a syndicate of underwriters (the "Underwriters") led by Beacon Securities Limited (and including National Bank Financial Inc.) of 11,500,000 units at a price of $0.30 per Unit for gross proceeds to the Corporation of $3,450,000 (including full exercise of the Underwriters' option). Each Unit consists of one common share of Algold and one-half of one common share purchase warrant, each whole warrant entitling the holder thereof to subscribe for one common share of Algold at a price of $0.40 for a period of 12 months from the closing date.
Concurrent with the brokered private placement, the Corporation closed a non-brokered private placement of 1,666,667 Units at a price of $0.30 per Unit for additional gross proceeds to the Corporation of $500,000 and, together with the brokered private placement, total gross proceeds to the Corporation of $3,950,000 (the "Offering").
The Corporation paid to the Underwriters a cash commission equal to 6% of the gross proceeds raised in connection with the brokered portion of the Offering and issued to the Underwriters that number of compensation options equal to 6% of the number of Units issued in connection with the brokered portion of the Offering, each option entitling the Underwriters to subscribe for one common share of Algold at a price of $0.30 for a period of 24 months from the closing date.
The Units, including all underlying securities thereof, are subject to a hold period of four months and one day from their date of issuance under applicable Canadian securities laws.
The net proceeds of the Offering will be used for working capital and general corporate purposes.
The securities offered have not been, and will not be, registered under 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 does not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor in any other jurisdiction.
ABOUT ALGOLD
Algold Resources Ltd is focused on the exploration and development of gold deposits in West Africa. The board of directors and management team are seasoned industry professionals with extensive experience in the exploration and development of outstanding gold projects in Africa.
SOURCE Algold Resources Ltd.
Algold Resources Limited.:
1320, Graham Blvd., Suite 132,
Town of Mont-Royal,
Quebec, H3P 3C8,
www.algold.com ;
François Auclair M.Sc., PGeo, President & CEO,
f.auclair@algold.com ,
(514) 889 5089;
Yves Grou, CPA CA, Executive Vice Chairman,
y.grou@algold.com ,
(514) 237 7757 |
