Prosper Gold (PGX-V) Nov 1st 2016 is pleased to announce that a second drill has been mobilized to the Ashley Gold Project in Northern Ontario. The Company has also completed a non-brokered flow-through private placement for gross proceeds of $1,670,324.
The second drill will expand the drilling of the Ashley Gold Project from the original 7,500 meters up to 20,000 meters. This will allow for deep and lateral drilling of the Ashley-Garvey gold systems. The drill program is targeting a potential bulk gold target signalled by the widespread high grade Ashley-Garvey surface veins that may coalesce at depth.
"Two drills are now operating. The most recent private placement will be used to continue drilling the Ashley Gold Project well into 2017," commented Peter Bernier, CEO.
The Private Placement consisted of 4,772,357 units (the "Units") at a price of $0.35 per Unit. Each Unit consisted of one common share of the Company that qualifies as a "flow-through share" for the purposes of the Income Tax Act (Canada) and one-half of one non-transferable non-flow through common share purchase warrant (each whole warrant, a "NFT Warrant"). Each NFT Warrant will entitle the holder thereof to purchase one additional common share of the Company (a "NFT Warrant Share") at an exercise price of $0.55 per NFT Warrant Share for a period of 36 months from the Closing Date. In the event that Prosper Gold's common shares trade at a closing price on the TSX Venture Exchange of greater than $0.75 per common share for a period of 20 consecutive trading days at any time after the closing date of the Private Placement, Prosper may accelerate the expiry date of the Warrants by giving notice to the holders thereof and in such case the Warrants will expire on the 30th day after the date on which such notice is given by Prosper Gold.
In connection with the Private Placement and in accordance with the policies of the TSX Venture Exchange, finder's fees totaling approximately $107,719.50 in cash were paid and approximately 286,341 common share purchase warrants (each, a "Finder Warrant") were issued. Each Finder Warrant is non-transferable and exercisable for one common share for a period of 36 months following closing at an exercise price equal to $0.55.
All securities issued pursuant to this Private Placement will be subject to a four month and one day hold period in accordance with applicable securities laws. The gross proceeds from the flow-through portion of the Private Placement will be used to fund exploration activities for 2017.
Qualified Person
The scientific and technical information in this news release has been reviewed by Dirk Tempelman-Kluit, PhD, P.Geo., a Qualified Person under National Instrument 43-101.
For a detailed overview of Prosper Gold please visit www.ProsperGoldCorp.com.
ON BEHALF OF THE BOARD OF DIRECTORS
Peter Bernier
President & CEO
Peter Bernier
President & CEO
Prosper Gold Corp.
(250) 992-6644
Pete@ProsperGoldCorp.com |
