/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED
STATES/
VANCOUVER, BC, July 21, 2020 /CNW/ - Fosterville South
Exploration Ltd. ("Fosterville South" or the "Company")
(TSXV: FSX) (OTC: FSXLF) is pleased to announce that it has closed
its previously announced private placement financing (the
"Offering") by issuing a total of 1,962,500 units (the "Units") at
a price of $4.00 per Unit for gross
proceeds of $7,850,000.
Highlights:
- Strong Participation from Current Large
Shareholders
- Multiple New Institutional Investors Added to Share
Registry
- Strong Balance Sheet and Cash Position and No Debt
Fosterville South Chief Executive Officer and Director, Bryan
Slusarchuk states, "We thank existing large shareholders,
new investors and the syndicate of agents for their support of our
exploration efforts via this oversubscribed financing. The strong
demand for this private placement is a testament to the quality of
assets and premier land package assembled over a multi-year period,
which provide a great foundation for our growth plans. Fosterville
South is in a very active phase on the ground, with multiple drills
turning and we are doing so with a strong balance sheet, a strong
cash position and no debt. We look forward to keeping you updated
as we progress."
Each Unit consists of one common share (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 purchase a Common Share at an exercise price
of $4.95 for a period of 24 months
ending July 21, 2022.
Clarus Securities Inc. acted as Lead Agent on behalf of a
syndicate of agents that included Canaccord Genuity Corp., PI
Financial Corp., Eventus Capital Corp. and Mackie Research Capital
Corporation. Fosterville South paid the syndicate of agents a
cash commission of $485,870 and
issued a total of 121,468 common share purchase warrants (the
"Broker Warrants"), with each Broker Warrant exercisable at
$4.00 per Common Share for a period
of 24 months ending July 21,
2022.
The securities issued under the Offering will be subject to
restrictions on resale expiring on November
22, 2020. Fosterville South intends to use the net
proceeds of the offering for exploration and for general working
capital purposes.
The securities referred to in this news release have not been,
nor will they be, registered under the United States Securities Act
of 1933, as amended, and may not be offered or sold within
the United States or to, or for
the account or benefit of, U.S. persons absent U.S. registration or
an applicable exemption from the U.S. registration requirements.
This release does not constitute an offer for sale of, nor a
solicitation for offers to buy, any securities in the United States.
About Fosterville South Exploration Ltd.
Fosterville South has two large, 100% owned, high-grade epizonal
gold projects called the Lauriston and Golden Mountain Projects, a
large group of tenement applications called the Providence Project
and a large group of recently consolidated tenement applications
called the Walhalla Belt Project, all in the state
of Victoria, Australia. The
Fosterville South land package, assembled over a multi-year period,
notably includes a 600 sq. km property immediately to the south of
and within the same geological framework that hosts Kirkland
Lake Gold's Fosterville tenements. Additionally,
Fosterville South recently acquired three gold-focused projects
called the Moormbool, Timor and Avoca Projects, which are also
located in the state of Victoria, Australia.
Six of Fosterville South's properties
(Lauriston, Providence, Golden
Mountain, Timor, Avoca and Walhalla Belt) have had
historical gold production from hard rock sources despite limited
modern exploration and drilling.
On behalf of the Company
Bryan Slusarchuk
Chief Executive Officer and Director
Forward-Looking Statements
Information set forth in this news release contains
forward-looking statements that are based on assumptions as of the
date of this news release. These statements reflect management's
current estimates, beliefs, intentions and expectations. They are
not guarantees of future performance. Fosterville South cautions
that all forward-looking statements are inherently uncertain and
that actual performance may be affected by many material factors,
many of which are beyond their respective control. Such factors
include, among other things: risks and uncertainties relating to
Fosterville South's limited operating history, its proposed
exploration and development activities on is Lauriston and Golden
Mountain Properties and the need to comply with environmental and
governmental regulations. Accordingly, actual and future
events, conditions and results may differ materially from the
estimates, beliefs, intentions and expectations expressed or
implied in the forward-looking information. Except as required
under applicable securities legislation, Fosterville South does not
undertake to publicly update or revise forward-looking
information.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the Exchange)
accepts responsibility for the adequacy or accuracy of this
release.
SOURCE Fosterville South Exploration Ltd.