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TORONTO, Oct. 13, 2020 /CNW/ - Superior Gold
Inc. ("Superior Gold" or the "Company") (TSXV: SGI) is
pleased to announce that it has entered into an agreement with PI
Financial Corp. as lead underwriter ("Lead Underwriter") along
with a syndicate of underwriters (the "Underwriters"), under which
the Underwriters have agreed to buy on a "bought deal" basis
21,430,000 common shares (the "Common Shares") at a price of
$0.70 per Common Share for aggregate
gross proceeds of $15,001,000 (the
"Offering"). The Company has granted the Underwriters an option,
exercisable at the offering price for a period of 30 days following
the closing of the Offering, to purchase up to an additional 15% of
the Common Shares to cover over-allotments, if any. The Offering is
expected to close on or about November 5,
2020 and is subject to Superior Gold receiving all necessary
regulatory approvals, including the approval of the TSX Venture
Exchange.
The net proceeds raised from the issuance of the Common Shares
will be used to fund advancement of the Company's projects, buy
back of a royalty associated with the operation and for working
capital purposes.
The Common Shares will be offered by way of a short form
prospectus offering, where qualified, to residents of all Provinces
of Canada, excluding Quebec, by way of private placement in
the United States, and such other
jurisdictions as may be agreed to by the Company and the Lead
Underwriter.
This news release does not constitute an offer to sell or a
solicitation of an offer to sell any of securities in the United States. The securities have not
been and will not be registered under the United States Securities
Act of 1933, as amended or any state securities laws and may not be
offered or sold within the United
States or to U.S. Persons unless registered under the U.S.
Securities Act and applicable state securities laws or an exemption
from such registration is available.
About Superior Gold
Superior Gold is a Canadian based gold producer that owns 100%
of the Plutonic Gold operations located in Western Australia.
The Plutonic Gold operations include the Plutonic underground gold
mine and central mill, the Hermes open pit projects and an interest
in the Bryah Basin joint venture. Superior Gold is focused on
expanding production at the Plutonic Gold operations and building
an intermediate gold producer with superior returns for
shareholders.
Forward-Looking Information
This news release contains "forward-looking information" within
the meaning of applicable securities laws that is intended to be
covered by the safe harbours created by those laws.
"Forward-looking information" includes statements that use
forward-looking terminology such as "may", "will", "expect",
"anticipate", "believe", "continue", "potential" or the negative
thereof or other variations thereof or comparable terminology. The
forward-looking information contained herein includes, without
limitation, information related to the timing and the completion of
the Offering. Forward-looking information also includes
information related to the Company's previously announced strategic
review process, the potential outcome of such process and the
intended maximization of shareholder value that the Company
believes may result from such process. By identifying such
information in this manner, the Company is alerting the reader that
such information is subject to known and unknown risks,
uncertainties and other factors that may cause the actual results,
level of activity, performance or achievements of the Company to be
materially different from those expressed or implied by such
forward-looking information.
Forward-looking information is not a guarantee of future
performance and is based upon a number of estimates and assumptions
of management at the date the statements are made. Furthermore,
such forward-looking information involves a variety of known and
unknown risks, uncertainties and other factors which may cause the
actual plans, intentions, activities, results, performance or
achievements of the Company to be materially different from any
future plans, intentions, activities, results, performance or
achievements expressed or implied by such forward-looking
information. Readers are encouraged to refer to the Annual
Information Form of the Company to be filed in connection with the
Offering for a discussion of other risks. In addition, the Company
is exposed to outbreaks or threats of outbreaks of viruses, other
infectious diseases or other similar health threats, including the
novel coronavirus ("COVID-19") outbreak, which could have a
material adverse effect on the Company by causing operational and
supply chain delays and disruptions, labour shortages, shutdowns,
the inability to sell gold, capital markets volatility or other
unknown but potentially significant impacts. The Company cannot
accurately predict what effects these conditions will have on the
Plutonic Gold Operations or the financial results of the Company,
including uncertainties relating to travel restrictions to the
Plutonic Gold Operations or otherwise and business closures that
have been or may be imposed by governments. If an outbreak or
threat of an outbreak of a virus or other infectious disease or
other public health emergency occurs, it could have a material
adverse effect on the Company's business, financial condition and
results of operations.
The Company cautions that there can be no assurance that
forward-looking information will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such information. Accordingly, investors should not
place undue reliance on forward-looking information as no assurance
can be given that any of the events anticipated by the
forward-looking information will transpire or occur, and if any of
them do so, what benefits the Company will derive therefrom. Except
as required by law, the Company does not assume any obligation to
release publicly any revisions to forward-looking information
contained in this news release to reflect events or circumstances
after the date hereof.
Neither the TSX Venture Exchange not its Regulation Services
Provider (as that term is defined in the policies of the Exchange)
accepts responsibility for the adequacy or accuracy of this
release.
SOURCE Superior Gold