Sprott backing Generic Gold for exploration near Amex Exploration's East Perron

Precious metals mega-investor Eric Sprott has thrown his support behind another exploration project in the East Perron play in Quebec. 

Generic Gold Corp. has entered into an agreement with StephenAvenue Securities Inc., in connection with a "best-efforts" brokered private placement financing for aggregate gross proceeds of up to $3,500,000 through the issuance of units at a price of $0.35 per Unit and flow-through units (each, a "FT Unit") at a price of $0.40 per FT Unit (together, the Units and the FT Units, the "Offered Securities"), with a lead order from Mr. Eric Sprott.

Each Unit shall be comprised of one common share (each, a "Common Share") in the capital of the Company and one Common Share purchase warrant (each, a "UnitWarrant"). Each Unit Warrant shall entitle the holder thereof to acquire one Common Share at a price of $0.50 for a period of two (2) years from the closing date (the "Closing Date") of the Offering. 

Each FT Unit shall be comprised of one Common Share, which shall qualify as "flow-through shares" (as such term is defined in subsection 66(15) of the Income Tax Act(Canada)) (each, a "FT Share") and one-half of one common share purchase warrant, issued on a non-flow-through basis (each, whole warrant a "FT Unit Warrant"). Each FT Unit Warrant shall entitle the holder thereof to purchase one additional Common Share, issued on a non-flow-through basis, at a price of $0.50 for a period of two (2) years from the Closing Date. 

The net proceeds from the sale of the Units will be used for general working capital and exploration purposes. The gross proceeds from the sale of the FT Units will be used by the Company to incur eligible "Canadian exploration expenses" that will qualify as "flow-through mining expenditures" as such terms are defined in the Income Tax Act (Canada) (the "Qualifying Expenditures") related to the Company's projects in Canada. All Qualifying Expenditures will be renounced in favour of the subscribers of the FT Units effective December 31, 2020. It is anticipated that most of the funds derived from the sale of the FT Units will be used to explore the Company's recently acquired Belvais project which is contiguous to Amex Exploration Inc.

The Offering is expected to close on or about August 6, 2020, or such other date as agreed between the Company and the Agent. The completion of the Offering is subject to certain closing conditions including, but not limited to, the receipt of all necessary regulatory and other approvals including the approval of the Canadian Securities Exchange. All Offered Securities will be subject to a statutory hold period of four months and one day from the Closing Date.

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