E2Gold Inc. (TSXV: ETU) (the “
Company” or
“
E2Gold”) is pleased to announce that it has
completed an oversubscribed initial public offering (the
“
Offering”) pursuant to which it has issued (i) an
aggregate of 10,961,500 units (“
Units”) at a price
of $0.20 per Unit; and (ii) an aggregate of 5,421,100 “flow
through” units (“
FT Units”) at a price of $0.22
per FT Unit, to raise aggregate gross proceeds of $3,384,942, with
a lead order from Palisades Goldcorp Ltd.
(“
Palisades”), all pursuant to a final prospectus
of the Company dated December 21, 2020 (the “
Final
Prospectus”).
Trading of the common shares of the Company on
the TSX Venture Exchange (the “TSXV”) is
anticipated to commence at the opening of business on Monday,
January 4, 2021. The common shares of the Company will trade under
the symbol “ETU”.
Beacon Securities Limited (the “Lead
Agent”), INFOR Financial Inc., M Partners Inc., and Red
Cloud Securities Inc. (collectively with the Lead Agent, the
“Agents”) acted as agents in the Offering, in
connection with which they received an aggregate of 1,146,782
compensation options, each such compensation option entitling the
holder to acquire one common share of the Company at an exercise
price of $0.20 per share until December 30, 2022.
Each Unit consists of one common share of the
Company and one share purchase warrant (a “Unit
Warrant”), with each Unit Warrant entitling the holder
thereof to acquire one additional common share of the Company at an
exercise price of $0.24 until December 30, 2023. Each FT Unit
consists of one common share of the Company which qualifies as a
“flow-through share” as defined in subsection 66(15) of the Income
Tax Act (Canada) and one-half of one share purchase warrant (each
whole such share purchase warrant, a “FT Warrant”)
on a non-flow-through basis, with each FT Warrant entitling the
holder thereof to acquire one additional common share of the
Company at an exercise price of $0.28 until December 30, 2022.
Use of proceeds from the Offering, including
corporate and acquisition costs, will be focused on exploration
activities on the Company’s 60 km long Hawkins Gold Project,
located in the Sault Ste Marie and Porcupine Mining Divisions,
north-central Ontario. The Hawkins Gold Project hosts an Inferred
Mineral Resource, the McKinnon Zone, compliant with National
Instrument 43-101: 6.2 million tonnes grading 1.65 g/t gold for
328,800 ounces of gold.
The Hawkins Gold Project consists of 400 single
cell mining claims and 19 boundary cell claims optioned from Pavey
Ark Minerals Inc. (“Pavey Ark”), plus 518
contiguous single cell mining claims on which the Company holds a
100% beneficial interest, totaling approximately 19,478 hectares.
Pavey Ark, a private Ontario company, is a mineral exploration
project generator in eastern and central Canada with several
advanced base and precious metal exploration properties.
Information on Pavey Ark is available at
www.paveyarkminerals.com.
For further information regarding the Offering
and the Hawkins Gold Project, please refer to (i) the Technical
Report in respect of the Hawkins Gold Project dated effective
September 10, 2020 titled “Technical Report and Updated Mineral
Resource Estimate on the Hawkins Gold Project, Derry, Ermine
Hawkins, Walls, Minnipuka, Legge and Puskuta Townships, Sault Ste.
Marie & Porcupine Mining Divisions, Ontario for E2Gold Inc.”
prepared by P&E Mining Consultants Inc. (the “Technical
Report”); and (ii) the Final Prospectus, each available on
SEDAR at www.sedar.com. All scientific and technical information in
this press release has been prepared under the supervision of Dr.
Eric Owens, the President and Chief Executive Officer of the
Company and a “Qualified Person” within the meaning of National
Instrument 43-101.
ABOUT E2GOLD INC.E2Gold Inc. is
a Canadian gold exploration company with a large gold property
covering 6 townships in north-central Ontario. The underexplored
Hawkins Gold Project hosts an Inferred Mineral Resource based upon
1980’s vintage Falconbridge drilling, subsequently staked in the
1990’s by Don McKinnon Sr. The Company completed first-pass surface
geological, geophysical, prospecting and trenching work in 2020.
Drill permits are in place as the Company prepares to begin a
diligent work program early in the first quarter 2021.
ABOUT PALISADES GOLDCORP
LTD.Palisades is Canada’s resource focused merchant bank.
Palisades’ management team has a demonstrated track record of
making money and is backed by many of the industry’s most notable
financiers. With junior resource equities valued at generational
lows, management of Palisades believes the sector is highly
prospective. Palisades is positioning itself with significant
stakes in undervalued companies and assets with the goal of
generating superior returns.
For further information please contact: Mr. Eric
Owens President and Chief Executive OfficerTel. (416) 509-5385
Email: eric.owens@e2gold.ca
Cautionary Statement on Forward -Looking
Information
Neither the TSXV nor its Regulation Services
Provider (as that term is defined in the policies of the TSXV)
accepts responsibility for the adequacy or accuracy of this
release.
No stock exchange, securities commission or
other regulatory authority has approved or disapproved the
information contained herein. This news release contains
forward-looking information which involves risks, uncertainties and
other factors that could cause actual events, results, performance,
prospects and opportunities to differ materially from those
expressed or implied by such forward-looking information.
Forward-looking information in this news release includes, but is
not limited to, the anticipated date of trading of the common
shares of the Company on the TSXV, the expected use of proceeds for
the Offering, and the prospective nature of the Hawkins gold
project and the junior resource sector. These statements are based
on assumptions, including that actual results of exploration,
resource goals, metallurgical testing, economic studies and
development activities will continue to be positive and proceed as
planned, assumptions in the Technical Report prove to be accurate,
requisite regulatory and governmental approvals will be received on
a timely basis on terms acceptable to the Company, economic,
political and industry market conditions will be favourable, and
financial markets and the market for gold will be positive for
junior resource companies in the short-term. Such statements are
subject to risks and uncertainties that may cause actual results,
performance or developments to differ materially from those
contained in such statements, including, but not limited to changes
in general economic and financial market conditions, changes in
demand and prices for minerals, regulatory and legislative
developments, dependence on regulatory approvals, changes in
environmental compliance requirements, community support and the
political and economic climate, the inherent uncertainties and
speculative nature associated with exploration results, Mineral
Resource Estimates, future metallurgical test results, changes in
project parameters as plans evolve, competitive developments,
availability of future financing, the effects of COVID-19 on the
business of the Company, exploration risks, and other factors
beyond the control of the Company including, but not limited to,
those risks set out in the Company's public documents filed on
SEDAR and in the Final Prospectus under the heading “Risk Factors”.
Although the Company believes that the assumptions and factors used
in preparing the forward-looking information in this news release
are reasonable, undue reliance should not be placed on such
information, which only applies as of the date of this news
release, and no assurance can be given that such events will occur
in the disclosed time frames or at all. The Company disclaims any
intention or obligation to update or revise any forward-looking
information, whether as a result of new information, future events
or otherwise, other than as required by law.
The securities of the Company have not been and
will not be registered under the United States Securities Act of
1933, as amended (the “U.S. Securities Act”) or
any state securities laws and may not be offered or sold within the
United States or to, or for the account or benefit of, U.S. Persons
(as such term is defined in Regulation S under the U.S. Securities
Act) unless registered under the U.S. Securities Act and applicable
state securities laws or an exemption from such registration is
available. This news release does not constitute an offer to sell
or a solicitation of an offer to buy any of the securities in the
United States or to, or for the account or benefit of, U.S.
Persons.
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