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OR FOR RELEASE, PUBLICATION, DISTRIBUTION OR DISSEMINATION
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TORONTO, Oct. 29, 2020 /CNW/ - Superior Gold
Inc. ("Superior Gold" or the "Company") (TSXV: SGI) is
pleased to announce that it has closed its previously announced
"bought deal" public offering of 24,644,500 common shares of the
Company (the "Common Shares"), at a price of C$0.70 per Common Share for gross proceeds of
C$17,251,150 (the "Offering"), which
includes the full exercise of the Underwriters' over-allotment
option. The Common Shares were offered and sold through a syndicate
of underwriters led by PI Financial Corp. (collectively, the
"Underwriters").
The Common Shares issued under the Offering were offered by way
of a short form prospectus dated October 23,
2020 in each of the provinces of Canada, except Québec and by way of private
placement in the United States.
Copies of the final short form prospectus and documents
incorporated by reference therein are available electronically
under Superior Gold's issuer profile on SEDAR at www.sedar.com.
The Underwriters were paid a cash commission of 6% on the gross
proceeds of the Offering. The net proceeds of the Offering will be
used for the advancement of the Company's Plutonic Gold operations,
to repurchase a royalty associated with the operations and for
working capital and general corporate purposes.
Tamara Brown, Interim CEO of
Superior Gold stated: "The strengthening of our balance sheet
allows the Company to execute on its strategy of increasing
production and cash flow from its Plutonic Gold operations.
We are very pleased to be in a position to exercise our option to
repurchase the Northern Star Royalty, significantly improving our
projected cash flow over the next two years. We will also continue
to advance underground development, accelerate our exploration
plans to follow up on our recent drilling success1 and
complete a preliminary economic assessment of a pushback at the
Plutonic main open pit."
An officer of the Company (the "Insider") has purchased an
aggregate of 86,000 Common Shares pursuant to the Offering.
Participation of the Insider in the Offering is considered a
"related party transaction" pursuant to Multilateral Instrument
61-101—Protection of Minority Holders in Special
Transactions ("MI 61-101"). The Company was exempt from the
requirements to obtain a formal valuation or minority shareholder
approval in connection with the Insider's participation in the
Offering pursuant to sections 5.5(a), 5.5(b), and 5.7(1)(a) of MI
61-101.
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 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.
___________
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1 Refer to
Superior Gold's news releases dated June 17, 2020 and June 24,
2020.
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SOURCE Superior Gold