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Prosper Gold raising $5.5 million for Golden Sidewalk near Red Lake

Dec 9, 2020

Prosper Gold Corp. intends to offer, on a non-brokered private placement basis, up to 6,111,111 units of the company at a price of $0.90 per unit for gross proceeds to the company of up to approximately $5,500,000. The Golden Sidewalk is a district-scale gold exploration project covering over 160 square kilometres of contiguous mineral claims and mining leases in the western Birch-Uchi Greenstone Belt, approximately 60 km east of Red Lake. There is no minimum offering amount.

Each Unit will consist of one common share of the Company (each, a “Common Share”) and one-half of one common share purchase warrant (each whole common share purchase warrant, a “Warrant”). Each Warrant will entitle the holder to acquire one common share of the Company at a price of $1.35 until the date that is 24 months following completion of the Offering.

In the event that Prosper Gold’s common shares trade at a closing price on the TSX Venture Exchange (the “TSX-V”) of greater than $1.80 per common share for a period of 20 consecutive trading days at any time after the closing date of the Offering, Prosper Gold may accelerate the expiry date of the Warrants by giving notice to the holders thereof and in such case the Warrants will expire on the 30th day after the date on which such notice is given by Prosper Gold.

It is anticipated that the private placement will close on December 17, 2020 or such other date as the Company may determine and is subject to the completion of formal documentation, receipt of all necessary regulatory approvals, including the approval of the TSX-V. Prosper Gold expects to use the net proceeds from the Offering to fund exploration activities for 2021 at the Golden Sidewalk Project and for working capital and general corporate purposes.

The Offering is non-brokered; however, Prosper Gold may pay finder’s fees in accordance with the rules and policies of the TSX-V.

All of the securities sold pursuant to the Offering will be subject to a four month hold period, which will expire four months and one day from the date of closing. The securities described herein have not been, and will not be, registered under the United States Securities Act of 1933, as amended, and were not permitted to be offered or sold within the United States absent registration or an applicable exemption from the registration requirements of such Act.


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