TSX-V: VEIN | FSE: N071
TORONTO, April 27, 2017 /CNW/ - Enforcer Gold Corp. ("Enforcer" or the "Company") (TSX-V: VEIN – FSE: N071) is pleased to announce that it has closed the second tranche of its previously announced non-brokered private placement by issuing an additional 1,422,500 units ("Units") for gross proceeds of $284,500 and 7,340,000 "flow-through" common shares (each a "FT Share") for gross proceeds of $1,835,000. Pursuant to the total Offering (see the Company's news releases of April 24, 2017), the Company has issued an aggregate of 8,701,200 Units and 12,960,000 FT Shares for total gross proceeds of $4,980,240.
Each Unit will consist of one common share and one-half of one common share purchase warrant ("Warrant"), with each Warrant being exercisable to acquire one common share of the company at a price of $0.30 for a period of 24 months following the closing date of the Offering.
The proceeds from the sale of FT Shares will be used for Canadian Exploration Expenses (within the meaning of the Income Tax Act (Canada) and Québec Tax Act) and will be renounced for the current taxation year.
In connection with the Offering, members of the selling group received a cash commission equal to 7% of the gross proceeds of the Offering and brokers warrants ("Brokers Warrants") exercisable to acquire that number of common shares of the Company equal to 7% of the aggregate number of Units and FT Shares sold under the Offering. All of the securities issued in connection with the second tranche are subject to a hold period expiring on August 27, 2017.
The Company intends to use the proceeds of the financing for exploration on the high-grade Montalembert Gold Project located in Quebec's prolific Abitibi greenstone belt and for general working purposes.
President & CEO Steve Roebuck comments:
"We as a company are extremely pleased with the expressed demand for this financing. We now look forward to creating shareholder value as we commence our spring/summer exploration program."
About Enforcer Gold Corp
Enforcer Gold Corp is earning a 100% interest in the 7300-hectare high-grade Montalembert Gold Project located west of Chibougamau in Quebec's prolific Abitibi Greenstone Belt. The project is very well situated only 5 kilometers from a paved highway, hydro-electric power and with easy access to skilled labour, fuel, food and accommodation it makes exploration costs low.
Two recent channel samples from the Galena vein, taken 20 meters apart along strike length, assayed 510.79 grams per tonne Au over 1 meter and 118.79 grams per tonne Au over 1 meter. Enforcer Gold has committed over $2.2M to fund its 2017 exploration program which includes; data compilation, ground and airborne geophysics, stripping of overburden, mapping, prospecting, channel sampling, RC and diamond drilling.
On behalf of the Board of Directors Enforcer Gold Corp.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
The TSX Venture Exchange has in no way passed upon the merits of the proposed transactions and has neither approved nor disapproved the contents of this press release.
THIS PRESS RELEASE, REQUIRED BY APPLICABLE CANADIAN LAWS, IS NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES, AND DOES NOT CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO SELL ANY OF THE SECURITIES DESCRIBED HEREIN IN THE UNITED STATES. THESE SECURITIES HAVE NOT BEEN, AND WILL NOT BE, REGISTERED UNDER THE UNITED STATED SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES OR TO U.S. PERSONS UNLESS REGISTERED OR EXEMPT THEREFROM.
SOURCE Enforcer Gold
For further information: For further information regarding this news release contact: Steve Roebuck, CEO, Tel: (647) 496-7984, Cell: (905) 741-5458, Email: [email protected]