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Shares Outstanding: 186,229,711
Trading Symbols: TSX: GGD
OTCQX: GLGDF
HALIFAX, Feb.
4, 2020 /CNW/ - GoGold Resources Inc. (TSX: GGD) (OTCQX:
GLGDF) ("GoGold" or the "Company") is pleased to announce that
it has amended the terms of its previously announced bought deal
offering of units of the Company (the "Units"). Under the amended
terms, Sprott Capital Partners LP ("Sprott") and PI Financial Corp.
as co-lead underwriters, along with BMO Capital Markets
(collectively, the "Underwriters"), have agreed to purchase, on a
bought deal basis, 35,714,285 Units at a price of C$0.70 per Unit for gross proceeds to the Company
of approximately C$25 million (the
"Offering"), with no over-allotment option. Each Unit will consist
of one common share in the capital of the Company (each a "Common
Share") and one-half of one common share purchase warrant (each
whole warrant, a "Warrant"). Each Warrant shall entitle the holder
to acquire an additional Common Share at a price of C$0.85 for a period of 24 months following the
closing of the Offering, provided that if the volume weighted
average price of the Common Shares on the Toronto Stock Exchange is
equal to or greater than C$1.20 for a
period of 10 consecutive trading days, the Company may, at its
option, elect to accelerate the expiry of the Warrants by providing
notice to the holders thereof, in which case the Warrants will
expire on the date specified in such notice, which shall be not
less than 30 calendar days following delivery of such notice.
The Company intends to use the net proceeds of the Offering to
fund additional exploration on its Los Ricos project, particularly
at the Monte Favor target on the project which the Company has yet
to drill, and for corporate development and general corporate
purposes.
The Units will be offered by way of short form prospectus in
each of the provinces of Canada,
except Québec, pursuant to National Instrument 44-101 – Short
Form Prospectus Distributions. The Units will not be offered or
sold in the United States except
under Rule 144A or Regulation D or in such other manner as to not
require registration under the United States Securities Act of
1933, as amended.
The Offering is scheduled to close on or before Tuesday, February 25, 2020, and is subject to
certain conditions including, but not limited to, receipt of all
regulatory approvals, including the approval of the Toronto Stock
Exchange and the applicable securities regulatory authorities.
The securities offered in the Offering 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 an 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 will
there be any sale of these securities in any jurisdiction in which
such offer, solicitation or sale would be unlawful.
About GoGold Resources
GoGold Resources (TSX: GGD) is
a Canadian-based silver and gold producer focused on operating,
developing, exploring and acquiring high quality projects in
Mexico. The Company operates the Parral Tailings project in
the state of Chihuahua and has the
Los Ricos exploration project in the state of Jalisco. Headquartered in Halifax, NS, GoGold is building a portfolio of
low cost, high margin projects. For more information visit
gogoldresources.com.
CAUTIONARY STATEMENT:
This news release may contain "forward-looking information" as
defined in applicable Canadian securities legislation. All
statements other than statements of historical fact, included in
this release, including, without limitation, statements regarding
the timing and completion of the Offering, the intended use of
proceeds from the Offering, and the future plans and objectives of
GoGold, constitute forward-looking information that involve
various risks and uncertainties. Forward-looking
information is based on a number of factors and assumptions which
have been used to develop such information but which may prove to
be incorrect, including, but not limited to, assumptions in
connection with the completion of the Offering, general economic
and market conditions, mineral prices and the accuracy of mineral
resource estimates. There can be no assurance that such
information will prove to be accurate and actual results and future
events could differ materially from those anticipated in such
forward-looking information.
Important factors that could cause actual results to differ
materially from GoGold's expectations include exploration and
development risks associated with the GoGold's projects, the
failure to establish estimated mineral resources or mineral
reserves, volatility of commodity prices, variations of recovery
rates and global economic conditions. For additional information
with respect to risk factors applicable to GoGold, reference should
be made to GoGold's continuous disclosure materials filed from time
to time with securities regulators, including, but not limited to,
GoGold's Annual Information Form. The forward-looking information
contained in this release is made as of the date of this
release.
SOURCE GoGold Resources Inc.