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Manitou Gold to raise $5 million for exploration

Sep 16, 2020

Manitou Gold Inc. is proposing to complete a non-brokered private placement to raise up to $5 million. Manitou Gold is a Canadian exploration company that has consolidated 22,500 hectares of prospective gold properties on the Michipicoten Archean Greenstone Belt, between the Island Gold Mine (operated by Alamos Gold Inc.) to the west and, to the east, the former producing Renabie Gold Mine, (owned by Barrick Gold). The lands assembled consist of 37 kilometres of strike length with at least seven under-explored large-scale deformation zones showing favorable lithology supported by more than 50 government-documented and registered gold occurrences.

Manitou Gold also owns a 148 km2 land package of highly prospective gold properties located in the historical Gold Rock District, in Northwestern Ontario (Dryden). This under-explored area has a very attractive geological setting hosting 61 known, documented and registered gold occurrences including three past producing mines (the Big Master, the Laurentian and the Elora). Until recently, the area has remained relatively untouched by modern-day exploration, pointing to excellent discovery potential over this large land package.

The offering will be comprised of a combination of (i) units (“Hard Units”) at a price of $0.06 per Hard Unit, and (ii) “flow-through” common shares of the Company (“FT Shares”) at a price of $0.09 per FT Share. Each Hard Unit consists of one common share of the Company and one share purchase warrant (a “Warrant”). Each Warrant entitles the holder to acquire one additional common share of the Company at an exercise price of $0.12 until the date which is two years from the closing date of the Offering. 

Manitou has agreed to pay eligible finders assisting in the Offering (i) a cash fee equal to 7% of the gross proceeds raised by such finders, and (ii) such number of broker warrants (“Broker Warrants”) as is equal to 7% of the total number of Hard Units and FT Shares sold by such finders, excluding those sold to President’s List subscribers. Each Broker Warrant shall be exercisable to acquire one Hard Unit at an exercise price of $0.06 for a period of two years following the date of issuance thereof.

Proceeds from the Offering will be used for continued exploration and general corporate purposes. An amount equal to the gross proceeds from the sale of the FT Shares will be used for expenditures which qualify as Canadian exploration expenses (“CEE”) and “flow-through mining expenditures” (within the meaning of the Income Tax Act (Canada)). The Company will renounce such CEE with an effective date of no later than December 31, 2020.

Tags: Northern Ontario / Deals & Financial / Gold / All Articles