/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED
STATES/
RENO, Nev., July 26, 2021 /CNW/ - Allegiant Gold
Ltd. ("Allegiant" or the "Company") (TSXV:
AUAU) (OTCQX: AUXXF) is pleased to announce that it has entered
into an agreement with a syndicate of investment dealers led by
Cormark Securities Inc. (collectively, the
"Underwriters") pursuant to which the Underwriters
have agreed to purchase, on a bought deal basis, an aggregate of
12,500,000 units (the "Units") of the Company, at a
price of $0.40 per Unit for total
gross proceeds to the Company of approximately $5 million (the
"Offering").
Each Unit will consist of one common share of the Company and
one-half of one common share purchase warrant (each whole common
share purchase warrant, a "Warrant"). Each Warrant will
entitle the holder thereof to acquire one common share of the
Company (a "Warrant Share") at a price of $0.70 per Warrant Share for a period of 24
months after Closing.
In addition, the Company has granted the Underwriters an option
(the "Over-Allotment Option") to purchase up to an
additional 15% of the Units of the Offering on the same terms
exercisable at any time up to 30 days following the closing of
the Offering, for market stabilization purposes and to cover
over-allotments, if any.
The Company intends to use the net proceeds of the Offering for
the advancement of the Company's Eastside project and for working
capital and general corporate purposes.
Closing of the Offering is expected to occur on or about
August 17, 2021 and is subject to certain conditions
including, but not limited to, the receipt of all necessary
approvals, including the approval of the TSX Venture Exchange and
the applicable securities regulatory authorities.
The Units to be issued under the Offering will be offered by way
of a short form prospectus in filed in each of the provinces of
Canada, excluding Québec, and may
be offered in the United States on
a private placement basis pursuant to an exemption from the
registration requirements of the United States Securities Act of
1933, as amended (the "U.S. Securities Act"), and applicable
state securities laws, and in jurisdictions outside of Canada and the
United States, in each case in accordance with all
applicable laws provided that no prospectus, registration statement
or similar document is required to be filed in such
jurisdiction.
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 prior to registration or qualification under
the securities laws of any such jurisdiction. This press release
does not constitute an offer of securities for sale in the United States. The securities being
offered have not been, nor will they be, registered under the U.S.
Securities Act, and such securities may not be offered or sold
within the United States absent
registration under U.S. federal and state securities laws or an
applicable exemption from such U.S. registration requirements.
ABOUT ALLEGIANT
Allegiant owns 100% of 10 highly-prospective gold projects in
the United States, 7 of which are
located in the mining-friendly jurisdiction of Nevada. Four of Allegiant's projects are
farmed-out, providing for cost reductions and cash-flow.
Allegiant's flagship, district-scale Eastside project hosts a large
and expanding gold resource and is located in an area of excellent
infrastructure. Preliminary metallurgical testing indicates that
both oxide and sulphide gold mineralization at Eastside is amenable
to heap leaching.
ON BEHALF OF THE BOARD
Peter Gianulis
CEO
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
Forward-Looking Statements
Certain statements and information contained in this press
release constitute "forward-looking statements" within the meaning
of applicable U.S. securities laws and "forward-looking
information" within the meaning of applicable Canadian securities
laws, which are referred to collectively as "forward-looking
statements". The United States Private Securities Litigation Reform
Act of 1995 provides a "safe harbor" for certain forward-looking
statements. Allegiant's exploration plans for its gold exploration
properties, the drill program at Allegiant's Eastside project, the
preparation and publication of an updated resource estimate in
respect of the Original Zone at the Eastside project, Allegiant's
future exploration and development plans, including anticipated
costs and timing thereof; Allegiant's plans for growth through
exploration activities, acquisitions or otherwise; and expectations
regarding future maintenance and capital expenditures, and working
capital requirements. Forward-looking statements are statements and
information regarding possible events, conditions or results of
operations that are based upon assumptions about future economic
conditions and courses of action. All statements and information
other than statements of historical fact may be forward-looking
statements. In some cases, forward-looking statements can be
identified by the use of words such as "seek", "expect",
"anticipate", "budget", "plan", "estimate", "continue", "forecast",
"intend", "believe", "predict", "potential", "target", "may",
"could", "would", "might", "will" and similar words or phrases
(including negative variations) suggesting future outcomes or
statements regarding an outlook. Such forward-looking statements
are based on a number of material factors and assumptions and
involve known and unknown risks, uncertainties and other factors
which may cause actual results, performance or achievements, or
industry results, to differ materially from those anticipated in
such forward-looking information. You are cautioned not to place
undue reliance on forward-looking statements contained in this
press release. Some of the known risks and other factors which
could cause actual results to differ materially from those
expressed in the forward-looking statements are described in the
sections entitled "Risk Factors" in Allegiant's Listing
Application, dated January 24, 2018,
as filed with the TSX Venture Exchange and available on SEDAR under
Allegiant's profile at www.sedar.com. Actual results and future
events could differ materially from those anticipated in such
statements. Allegiant undertakes no obligation to update or revise
any forward-looking statements included in this press release if
these beliefs, estimates and opinions or other circumstances should
change, except as otherwise required by applicable law.
SOURCE Allegiant Gold Ltd.