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VANCOUVER, Sept. 17, 2019 /CNW/ - FireFox Gold Corp. ("FireFox" or the "Company") announces, effective September 16th, 2019 that, subject to regulatory acceptance, it has completed the second and final tranche of a non-brokered private placement (the "Private Placement"). In both tranches together the Company raised total gross proceeds of $570,500 by issuing 3,803,333 units of the Company. The second tranche was completed by issuing 1,830,000 units of the Company at a purchase price of $0.15 per unit for gross proceeds of $274,500. Each unit consists of one common share of the Company and one non-transferrable common share purchase warrant. Each warrant shall be exercisable into one additional common share of the Company for a period of two years from the closing of the offering at an exercise price of $0.20.
Finders fees of $3,780 are payable in cash to parties at arm's length to the Company on a portion of the private placement. In addition, 22,800 non-transferable Broker Warrants are being issued to those same parties. Each Broker Warrant shall be exercisable into one common share of the Company for a period of two years from the closing of the offering at an exercise price of $0.20.
Two related parties participated in the first tranche of the transaction, having subscribed for a total of 440,000 units for gross proceeds of $66,000. The Company is relying on the exemptions from the valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101, as the fair market value of the participation in the offering by insiders does not exceed 25 per cent of the market capitalization of the Company, as determined in accordance with MI 61-101. The Company did not file a material change report in respect of the related party transaction at least 21 days before the closing of the offering, which the Company deems reasonable in the circumstances in order to complete the offering in an expeditious manner.
After this financing, FireFox has 40.7 million shares outstanding, 15.6 million warrants, and 3.5 million stock options issued.
The shares issued pursuant to the offering will be subject to a statutory hold period of four months plus one day from the date of issuance, in accordance with applicable securities legislation. Finders' fees may be payable to qualified finders in accordance with applicable regulations. All currency figures cited in this news release are in Canadian dollars.
About FireFox Gold Corp.
FireFox Gold Corp is listed on the TSX Venture stock exchange under the ticker symbol FFOX. The Company is focused entirely on gold exploration in Finland where it is exploring its project portfolio that includes over 150,000 hectares of prospective ground.
Finland is one of the top mining investment jurisdictions in the world as indicated by its multiple top-10 rankings in recent Fraser Institute Surveys of Mining Companies. Having a strong mining law and long mining tradition, Finland remains underexplored for gold. Recent exploration results in the country have highlighted its prospectivity, and FireFox is proud to have a Finland based CEO and technical team.
For more information concerning the Company, please refer to the Company's profile on the SEDAR website at www.sedar.com.
On behalf of the Board of Directors,
Chief Executive Officer
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward Looking Statements
The information in this news release contains forward looking statements that are subject to a number of known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those anticipated in our forward looking statements. Factors that could cause such differences include: changes in world commodity markets, withholding of or delays in obtaining regulatory approvals, equity markets, costs and supply of materials relevant to the mining industry, change in government and changes to regulations affecting the mining industry. Forward-looking statements in this release may include statements regarding the completion of the offering and the timing thereof and the use of proceeds therefrom. Although we believe the expectations reflected in our forward looking statements are reasonable, actual results may vary. The forward-looking statements contained in this press release represent the expectations of FireFox as of the date of this press release and, accordingly, are subject to change after such date. Readers should not place undue importance on forward-looking statements and should not rely upon this information as of any other date. FireFox does not undertake to update this information at any particular time except as required in accordance with applicable laws.
It should also be noted that while FireFox's properties are sometimes adjacent to or nearby operating or historic gold mines or active gold projects being advanced by other companies, the mineralization on properties nearby FireFox's land packages is not necessarily indicative of mineralization on FireFox's properties.
SOURCE FireFox Gold Corp.
For further information: FireFox Gold Corp., Email: [email protected], Telephone: 604-558-7687