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HighGold Mining Announces Closing of $3.7 Million Non-Brokered Private Placement Offering

Dec 24, 2020

HighGold Mining Inc. has closed its previously announced non-brokered private placement (the "FT Private Placement") of 1,500,000 flow-through common shares in its capital (the "FT Shares") at a price of $2.00 per FT Share for aggregate gross proceeds of $3,000,000 (see news release dated December 15, 2020).

In connection with the FT Private Placement, the Company issued an additional 350,000 flow-through common shares of the Company (the "Participation Shares") pursuant to an existing shareholder's election to exercise its participation right granted under an investor rights agreement (the "Participation Right Exercise"; together with the FT Private Placement, the "Offering"). The Participation Shares were issued at a price of $2.00 per Participation Share for additional gross proceeds of $700,000, for aggregate gross proceeds from the Offering of $3,700,000 (see news release dated December 22, 2020).

The gross proceeds from the Offering are intended to be used to incur Canadian Exploration Expenses that are "flow-through mining expenditures" (as such terms are defined in the Income Tax Act (Canada)) on the Company's Ontario gold projects located in the greater Timmins region, Ontario, which will be renounced to the subscribers with an effective date no later than December 31, 2020, in the aggregate amount of not less than the total amount of the gross proceeds raised from the Offering.

In connection with the Offering, the Company paid a finder's fee to Cormark Securities Inc. on a portion of the raise consisting of a cash commission of $180,000. All securities issued in connection with the Offering are subject to a four-month and one day hold period in Canada. 


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