Maple Gold to raise $5 Million in Private Placement
Maple Gold Mines Ltd. has entered into an agreement with Beacon Securities Limited to act as sole lead agent and bookrunner, on behalf of a syndicate of agents to be formed (together with Beacon, the "Agents"), in connection with a "best efforts" private placement offering of a combination of non-flow-through units of the Company (the "NFT Units") at a price of $0.065 per NFT Unit (the "NFT Issue Price") and flow-through common shares of the Company (the "FT Shares", and together with the NFT Units, the "Offered Securities") at a price of $0.08 per FT Share (the "FT Issue Price") for total gross proceeds to the Company of up to $5,000,000 (the "Offering").
Each NFT Unit will consist of one common share of the Company and one-half of one common share purchase warrant of the Company (each whole common share purchase warrant, a "Warrant"). Each Warrant will entitle the holder thereof to acquire one non-flow-through common share of the Company (a "Warrant Share") at a price per Warrant Share of $0.10 for a period of 36 months from the closing of the Offering.
Each FT Share shall qualify as a "flow-through share" for the purposes of the Income Tax Act (Canada) (the "Tax Act").
The Offered Securities will be offered pursuant to Part 5A (the "Listed Issuer Financing Exemption") of National Instrument 45-106 - Prospectus Exemptions ("NI 45-106") to purchasers resident in Canada, and in other qualifying jurisdictions outside of Canada that are mutually agreed to by the Company and Beacon pursuant to relevant prospectus or registration exemptions in accordance with applicable laws. The Offered Securities issued under the Listed Issuer Financing Exemption to Canadian subscribers will not be subject to a hold period in Canada.
The Company will use an amount equal to the gross proceeds from the sale of the FT Shares to incur eligible "Canadian exploration expenses" (as defined in the Tax Act): (i) that will qualify as "flow-through mining expenditures" (as defined in the Tax Act) and, (ii) in respect of Québec resident subscribers who are eligible individuals under the Taxation Act (Québec) (the "Québec Tax Act"), that will also qualify for inclusion in the "exploration base relating to certain Québec exploration expenses" within the meaning of section 726.4.10 of the Québec Tax Act and for inclusion in the "exploration base relating to certain Québec surface mining expenses" within the meaning of section 726.4.17.2 of the Québec Tax Act (collectively, the "Qualifying Expenditures") related to the Company's mineral properties located in Québec, Canada on or before December 31, 2025. All Qualifying Expenditures will be renounced in favour of the subscribers effective December 31, 2024. The Company intends to use the net proceeds from the sale of NFT Units for general and administrative expenses and unallocated working capital purposes over a period of 12 months following closing of the Offering.
There is an offering document related to this Offering that can be accessed under the Company's profile at www.sedarplus.ca and on the Company's website at www.maplegoldmines.com. Prospective investors should read this offering document before making an investment decision.
In addition to the Offering, the Company may undertake a concurrent private placement offering for gross proceeds to the Company of up to $1,000,000 (the "Concurrent Private Placement"), consisting of NFT Units at the NFT Issue Price, pursuant to relevant prospectus or registration exemptions other than the Listed Issuer Financing Exemption in accordance with applicable laws. The securities issued under Concurrent Private Placement will be subject to a four month hold period in Canada.
The Offering is expected to close on or about November 14, 2024 (the "Closing Date") and is subject to the Company receiving all necessary regulatory approvals, including the approval of the TSX Venture Exchange. The Concurrent Private Placement, if applicable, is expected to close on or after the Closing Date.
The Offered Securities to be offered pursuant to the Offering and the Concurrent Private Placement have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act") or any U.S. state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, United States persons absent registration or any applicable exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
About Maple Gold
Maple Gold Mines Ltd. is a Canadian advanced exploration company focused on advancing the district-scale Douay and Joutel gold projects located in Québec's prolific Abitibi Greenstone Gold Belt. The projects benefit from exceptional infrastructure access and boast ~400 km2 of highly prospective ground including an established gold mineral resource at Douay with significant expansion potential as well as the past-producing Telbel and Eagle West mines at Joutel. In addition, the Company holds an exclusive option to acquire 100% of the Eagle Mine Property, a key part of the historical Joutel mining complex.
The district-scale property package also hosts a significant number of regional exploration targets along a 55-km strike length of the Casa Berardi Deformation Zone that have yet to be tested through drilling, making the project ripe for new gold and polymetallic discoveries. The Company is currently focused on carrying out exploration and drill programs to grow mineral resources and make new discoveries to establish an exciting new gold district in the heart of the Abitibi. For more information, please visit www.maplegoldmines.com.
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