VANCOUVER, BC, March 8, 2022 /CNW/ - Gold Line Resources
Ltd. (TSXV: GLDL) (Frankfurt:
4UZ) (WKN: A2QGWC) (OTCQB: TLLZF) ("Gold Line" or the
"Company") announces that, further to its news release dated
January 31, 2022 which detailed the
closing of the first tranche of its non-brokered private placement
(the "Private Placement"), the Company will not be
proceeding with a second tranche and has now closed the Private
Placement with a total of $4,100,000
of the previously announced $4,500,000 upsized maximum amount. Certain
members of the Sprott group of companies acted as finders in the
Private Placement with respect to the sale of 18,750,000 Units, or
$3,000,000, representing 67% of the
gross proceeds.
The net proceeds from the Private Placement are intended to be
used to complete Phase 2 of the Company's reconnaissance drilling
program at its Paubäcken property, situated in the Gold Line
Mineral Belt in Sweden, and for
general working capital purposes.
Under the Private Placement, the Company issued an aggregate of
25,625,000 units (the "Units") at a price of $0.16 per Unit to raise gross proceeds of
$4,100,000. Each Unit consisted of
one (1) common share and one (1) common share purchase warrant
(each, a "Warrant"). Each Warrant entitles the holder
thereof to purchase one additional common share (each, a
"Warrant Share") at a price of $0.25 for a period of thirty-six (36) months from
the date of issuance.
In connection with closing of the Private Placement, the Company
confirms that it has paid $200,952
and issued 1,255,953 finder's warrants ("Finder's Warrants")
to the previously-mentioned finders under the Private Placement in
consideration for introducing subscribers to the Private Placement.
Each Finder's Warrant is exercisable at a price of $0.16 for a period of two (2) years from the date
of issuance for one common share in the capital of the Company.
Two insiders of the Company participated in the Private
Placement and acquired an aggregate of 1,250,000 Units. The
purchase constitutes a "related party transaction" within the
meaning of Multilateral Instrument 61-101 – Protection of Minority
Security Holders in Special Transactions ("MI 61-101"). The
issuances are exempt from the formal valuation and minority
shareholder approval requirements of MI 61-101 as they are
distributions of securities for cash and the fair market value of
the Units issued to, and the consideration paid by, the insiders
did not exceed 25% of the Company's market capitalization. No new
insiders were created, nor any change of control occurred, as a
result of the Private Placement.
Readers should no longer rely on the previously announced
closing figures of the Private Placement and the figures listed
above should be taken as final. All securities issued and issuable
under the Private Placement will be subject to a four (4) month
hold period expiring June 1,
2022.
About Gold Line Resources Ltd.
Gold Line Resources is focused on acquiring mineral properties
with exceptional exploration potential in the most prolific
gold-producing regions of Fennoscandia. Gold Line is working in one
of the world's top mining jurisdictions and emerging exploration
frontiers due to its strong mineral endowment, stable tenure,
straightforward permitting, favourable tax regime and supportive
geopolitical landscape.
Gold Line currently holds a prospective portfolio of five gold
exploration projects in Sweden:
one project is in the Skelleftea belt of north-central Sweden and four projects, including the
Långtjärn property, are located within the Gold Line Mineral Belt
of north-central Sweden. The
projects are located on a 200-kilometre Proterozoic greenstone
sedimentary belt that is host to multiple gold showings and
deposits.
On behalf of the Board of Directors of Gold Line
Resources,
Adam Cegielski
CEO & Director
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Neither the 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.
Cautionary Note Regarding Forward-Looking
Statements
This news release contains statements that constitute
"forward-looking statements." Such forward looking statements
involve known and unknown risks, uncertainties and other factors
that may cause Gold Line's actual results, performance or
achievements, or developments to differ materially from the
anticipated results, performance or achievements expressed or
implied by such forward-looking statements. Forward looking
statements are statements that are not historical facts and are
generally, but not always, identified by the words "expects,"
"plans," "anticipates," "believes," "intends," "estimates,"
"projects," "potential" and similar expressions, or that events or
conditions "will," "would," "may," "could" or "should" occur.
SOURCE Gold Line Resources Ltd.