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Probe Gold’s $15 Million Private Placement To Help Fund Exploration Work

Mar 14, 2023

Probe Gold Inc. has entered into an agreement with Canaccord Genuity Corp. on behalf of a syndicate of underwriters who have agreed to purchase 7,389,200 common shares of the company that will qualify as “flow-through shares” under the Income Tax Act of Canada and the Taxation Act of Québec.

A bought deal is a type of securities offering in which the underwriter commits to buying the entire offering from the issuer company before a preliminary prospectus is filed. A bought deal eliminates the financing risk faced by the issuer company.

The shares were purchased at a price of $2.03 per Flow-Through Share for gross proceeds of $15,000,076. The funds from share purchases will be used by Probe Gold to incur eligible “Canadian exploration expenses” that will qualify as flow-through mining expenditures under Canada’s Income Tax Act and Québec surface mining deductions under the Taxation Act of Quebec related to the Company’s properties located in Quebec, Canada on or before December 31, 2024. Probe will pass on all qualifying expenditures to the syndicate of underwriter investors effective December 31, 2023.

Flow-through shares are a financing tool available to a Canadian resource company that allows it to issue new equity (shares) to investors at a higher price than it would receive for “normal” shares, thereby assisting it in raising money for exploration and development. Investors are willing to pay more for flow-through shares, because the investors are permitted to claim deductions reducing the investor’s Canadian taxes.

Probe intends to use the money from the share purchases by the Canaccord Genuity Corp to continue exploration and drilling at its Novador Gold project and Detour Gold project. The offering is expected to close on or about March 27, 2023 subject to the company receiving all necessary regulatory approvals.

 The Flow-Through Shares will be offered by way of private placement pursuant to applicable exemptions from prospectus requirements in each of the provinces of Alberta, British Columbia, Ontario, Quebec and in such other jurisdictions as may be mutually agreed between the Company and the Underwriters. The securities issued under the offering will be subject to a four month hold period under applicable Canadian securities laws.

Earlier on March 2, 2023 Probe Gold announced it had updated its Mineral Resource estimates and filed a National instrument 43-101 Technical Report for Novador’s Monique property  The report is available for review on both SEDAR (www.sedar.com) and the Probe’s website (www.probegold.com).

Since 2016, Probe Gold has been consolidating its land holdings near Val-d’Or East area in the province of Quebec with a district-scale land package of 436 square kilometers that is one of the largest land holdings in the Val-d’Or mining camp.

The Novador project is a subset of properties totaling 175 square kilometers hosting three past producing mines (Beliveau Mine, Bussière Mine and Monique Mine) and falls along three regional mine trends. Novador is situated in a politically stable and low-cost mining environment that hosts numerous active producers and mills. The Monique property, part of the Company’s Novador Project, consists of 21 claims and one mining lease, covering a large portion of the reported gold resource, with a total area of 5.5 square kilometres in Louvicourt township, located 25 kilometers east of Val-d’Or.

Gold mineralization on the Monique property is mainly associated with three deformation zones that cross the property with an orientation of 280° and a 75°- 80° dip to the north. Gold mineralization is defined by a network of quartz/carbonate/albite/±tourmaline veins and veinlets with disseminated pyrite in the altered wall rocks. More than thirty-eight (38) parallel gold zones have been discovered on the property, to-date. Some mineralized zones have been defined from surface to a depth of 700 metres and vary in width from 1 metre to up to 100 metres. Mineralized structures extend laterally up to 1,500 metres.

Probe Gold Inc. is a leading Canadian gold exploration company focused on the acquisition, exploration, and development of highly prospective gold properties. The company is committed to discovering and developing high-quality gold projects, including its key asset the multimillion-ounce Novador Gold Project, Québec.

 For further information:
 Seema Sindwani
Vice-President of Investor Relations


Image Map of Probe Gold's Monique Property

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