Angus Gold Completes $3.3 Million Strategic Investment by New Gold Inc. by way of a Private Placement
March 18 2021 - 08:55AM
Angus Gold Inc. (TSX-V: GUS)
(“Angus” or the
“
Company”) is pleased to announce that it has
closed its previously announced non-brokered private placement for
total gross proceeds of $3,297,000 to the Company (the
“
Financing”). The Financing was comprised of
700,000 hard dollar shares (“
Hard Shares”) at a
price of $0.71 per Hard Share and of 2,800,000 flow through shares
of the Company (“
FT Shares”) at a price of
$1.00 per FT Share. Each FT Share consists of one common share
in the capital of the Company (a “
Common
Share”) issued on a flow-through basis within the meaning
of the Income Tax Act (Canada) (“
Tax Act”). The
gross proceeds from the Financing will be used to fund exploration
on the Company’s projects in Ontario and for working capital
purposes. The gross proceeds received by the Company from the sale
of FT Shares will be used to incur Canadian Exploration Expenses
that are “'flow-through” mining expenditures as such terms are
defined in the Tax Act. The securities issued under the Financing
have a hold period expiring on July 19, 2021.
New Gold Inc. InvestmentNew Gold
Inc. (“New Gold”) (TSX: NGD)
purchased 3,500,000 Common Shares in connection with the Financing,
which represents approximately 9.9% of Angus’ issued and
outstanding Common Shares. In connection with this investment,
Angus granted New Gold the right to maintain its pro rata ownership
percentage during future financings or in the case of any dilutive
issuance to allow New Gold to maintain or increase its equity
ownership interest in Angus to a maximum of 9.9% of the issued and
outstanding Common Shares. Such rights shall extinguish if New Gold
ceases to beneficially own at least 7.5% of the issued and
outstanding Common Shares of Angus (on an undiluted basis).
About Angus Gold:Angus is a
Canadian gold exploration company with a 234-square-kilometres land
package located in north-central Ontario approximately
50 kilometres west of the town of Wawa and lies between
Wesdome Gold Mines’ two producing mines.
ON BEHALF OF THE BOARD OF DIRECTORSAndrey
ShamisChief Executive Officer and Director
INQUIRIES:Email: info@angusgold.comCompany
Website: www.angusgold.com
TSXV: GUS | USOTC: ANGVF
Forward-Looking Statements
Neither TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release. This News Release includes certain
"forward-looking statements" which are not comprised of historical
facts including statements regarding the use of proceeds.
Forward-looking statements include estimates and statements that
describe the Company’s future plans, objectives or goals, including
words to the effect that the Company or management expects a stated
condition or result to occur. Forward-looking statements may be
identified by such terms as “believes”, “anticipates”, “expects”,
“estimates”, “may”, “could”, “would”, “will”, or “plan”. Since
forward-looking statements are based on assumptions and address
future events and conditions, by their very nature they involve
inherent risks and uncertainties. Although these statements are
based on information currently available to the Company, the
Company provides no assurance that actual results will meet
management’s expectations. Risks, uncertainties and other factors
involved with forward-looking information could cause actual
events, results, performance, prospects and opportunities to differ
materially from those expressed or implied by such forward-looking
information. Forward looking information in this news release
includes, but is not limited to, the Company’s objectives, goals or
future plans, statements, exploration results, potential
mineralization, the estimation of mineral resources, exploration
and mine development plans, timing of the commencement of
operations and estimates of market conditions. Factors that could
cause actual results to differ materially from such forward-looking
information include, but are not limited to: the ability to
anticipate and counteract the effects of COVID-19 pandemic on the
business of the Company, including without limitation the effects
of COVID-19 on the capital markets, commodity prices supply chain
disruptions, restrictions on labour and workplace attendance and
local and international travel, failure to receive requisite
approvals in respect of the Transaction, failure to identify
mineral resources, failure to convert estimated mineral resources
to reserves, the inability to complete a feasibility study which
recommends a production decision, the preliminary nature of
metallurgical test results, delays in obtaining or failures to
obtain required governmental, environmental or other project
approvals, political risks, inability to fulfill the duty to
accommodate First Nations and other indigenous peoples,
uncertainties relating to the availability and costs of financing
needed in the future, changes in equity markets, inflation, changes
in exchange rates, fluctuations in commodity prices, delays in the
development of projects, capital and operating costs varying
significantly from estimates and the other risks involved in the
mineral exploration and development industry, and those risks set
out in the Company’s public documents filed on SEDAR. Although the
Company believes that the assumptions and factors used in preparing
the forward-looking information in this news release are
reasonable, undue reliance should not be placed on such
information, which only applies as of the date of this news
release, and no assurance can be given that such events will occur
in the disclosed time frames or at all. The Company disclaims any
intention or obligation to update or revise any forward-looking
information, whether as a result of new information, future events
or otherwise, other than as required by law.
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