GoGold Announces C$30 Million Bought Deal Financing
September 01 2020 - 3:21PM
GoGold Resources Inc. (TSX: GGD) (OTCQX: GLGDF) (“GoGold or
the “Company”) has announced today that it has entered
into an agreement with BMO Capital Markets as sole bookrunner along
with a syndicate of underwriters including Sprott Capital Partners
LP, PI Financial Corp., and Eight Capital., under which the
underwriters have agreed to buy on bought deal basis 20,000,000
common shares (the “Common Shares”), at a price of C$1.50 per
Common Share for gross proceeds of approximately C$30 million (the
“Offering”). The Company has granted the Underwriters an option,
exercisable at the offering price for a period of 30 days following
the closing of the Offering, to purchase up to an additional 15% of
the Offering to cover over-allotments, if any. The offering is
expected to close on or about September 18, 2020 and is subject to
GoGold receiving all necessary regulatory approvals.
The net proceeds of the offering will be used to
accelerate the advancement of the Company’s Los Ricos project and
for general corporate purposes.
The Common Shares will be offered by way of a
short form prospectus in all of the provinces of Canada, other than
Quebec, and may also be offered by way of private placement in the
United States.
The securities offered have not been registered
under the U.S. Securities Act of 1933, as amended, and may not be
offered or sold in the United States absent registration or an
applicable exemption from the registration requirements. 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 GoGold ResourcesGoGold
Resources (TSX: GGD) is a Canadian-based silver and gold
producer focused on operating, developing, exploring and acquiring
high quality projects in Mexico. The Company operates the
Parral Tailings project in the state of Chihuahua and has
the Los Ricos exploration project in the state of Jalisco.
Headquartered in Halifax, NS, GoGold is building a portfolio
of low cost, high margin projects. For more information
visit gogoldresources.com.
CAUTIONARY STATEMENT This news
release may contain "forward-looking information" as defined in
applicable Canadian securities legislation. All statements
other than statements of historical fact, included in this release,
including, without limitation, statements regarding the timing and
completion of the Offering, the intended use of proceeds from the
Offering, and the future plans and objectives of GoGold, constitute
forward-looking information that involve various risks and
uncertainties. Forward-looking information is based on a
number of factors and assumptions which have been used to develop
such information but which may prove to be incorrect, including,
but not limited to, assumptions in connection with the completion
of the Offering, general economic and market conditions, mineral
prices and the accuracy of mineral resource estimates. There
can be no assurance that such information will prove to be accurate
and actual results and future events could differ materially from
those anticipated in such forward-looking information.
Important factors that could cause actual
results to differ materially from GoGold's expectations include
exploration and development risks associated with the GoGold's
projects, the failure to establish estimated mineral resources or
mineral reserves, volatility of commodity prices, variations of
recovery rates and global economic conditions. For additional
information with respect to risk factors applicable to GoGold,
reference should be made to GoGold's continuous disclosure
materials filed from time to time with securities regulators,
including, but not limited to, GoGold's Annual Information Form.
The forward-looking information contained in this release is made
as of the date of this release.
For further information please
contact: Steve LowCorporate DevelopmentGoGold Resources
Inc.T: 416 855 0435Email: steve@gogoldresources.com
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