/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED
STATES/
TORONTO, May 27, 2020 /CNW/ - Warrior Gold Inc. (TSX-V
- WAR) ("Warrior Gold" or the "Company") announces that
the Company has arranged a non-brokered private placement of up to
8,333,333 flow-through units (the "FT Units") at a price of
$0.087 per FT Unit (the " Offering"),
for aggregate gross proceeds of up to $725,000.
Each flow-through unit shall be comprised of one common share of
the Company issued on a flow-through basis and one-half of one
common share purchase warrant to be issued on a non-flow-through
basis. Each whole warrant shall entitle the holder thereof to
acquire one common share of Warrior Gold at a price of $0.10 for a period of 18 months following the
closing of the offering, subject to an accelerated expiry date. If
at any time following the expiry of the statutory four-month and
one-day hold period the closing price of Warrior Gold common shares
on the TSX Venture Exchange is greater than $0.20 for 20 or more consecutive trading days,
the Company may give notice to the holders of warrants that the
expiry date of the warrants will be accelerated and will expire on
the 30th business day following the date of such
notice.
The flow-through shares issued in connection with the Offering
will qualify as flow-through shares within the meaning of
Subsection 66(15) of the Income Tax Act (Canada) and Section 359.1 of the Taxation Act
(Quebec).
Danièle Spethmann, President and CEO of Warrior Gold, commented,
"The proceeds of this financing will be utilized to fund a summer
field season of mapping, sampling, and a 2,000-metre drill program.
Fieldwork is anticipated to start in mid-June 2020 and drilling soon thereafter.
The drill program will test the A Zone extensions identified during
the Company's fall 2019 diamond drill program and will also test
exploration targets identified during the Company's previous
drilling and ongoing compilation work."
Closing of the Offering is subject to approval of the TSX
Venture Exchange ("TSXV"). The securities issued under the
Offering, and any common shares that may be issuable on exercise of
warrants, will be subject to a statutory hold period expiring four
months and one day from the date of issuance of such common
shares.
Warrior Gold may pay a finder's fee of 7% cash and 7%
compensation warrants on the Offering in accordance with applicable
securities laws and the policies of the TSXV.
In other news, the Company reports that it has granted a total
of 400,000 options to purchase common shares of the Company to a
new director and officer pursuant to the Company's Stock Option
Plan. Each option is exercisable at a price of $0.10 until May 6,
2025.
About Warrior Gold Inc.
Warrior Gold is a TSX Venture Exchange listed Company that owns
the Goodfish-Kirana Property located five km from the town of
Kirkland Lake, Ontario. The
Property is located in the historic Kirkland Lake Gold Camp which is situated in the
prolific Abitibi Greenstone Belt, recognized as one of the world's
highest grade greenstone belts with over 200 million ounces of gold
produced to date.
The Goodfish-Kirana Property is 11.5 km long by roughly three km
wide (34 km2) and contains three major structural
trends: the east-west trending Kirana Deformation Zone; the
northeast trending Goodfish Deformation Zone; and the Victoria
Creek Deformation Zone on the recently acquired Sutton claims on the northeast side of the
property. The Property contains numerous historical gold showings,
as well as 18 historical pits and shafts.
Neither the 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.
Forward-Looking Statements: This press
release contains forward-looking statements. Forward-looking
statements are frequently characterized by words such as "plan",
"expect", "project", "intend", "believe", "anticipate", "estimate",
"may", "will", "would", "potential", "proposed" and other similar
words, or statements that certain events or conditions "may" or
"will" occur. The forward-looking statements are based on certain
key expectations and assumptions made by the Company. Although
Warrior Gold believes that the expectations and assumptions on
which the forward-looking statements are based are reasonable,
undue reliance should not be placed on the forward-looking
statements because Warrior Gold can give no assurance that they
will prove to be correct. Since forward-looking statements address
future events and conditions, by their very nature they involve
inherent risks and uncertainties. Actual results could differ
materially from those currently anticipated due to a number of
factors and risks. In addition to other risks that may affect the
forward-looking statements in this press release are those set out
in the Company's Management Discussion and Analysis of the
financial condition and results of operations for the year ended
March 31, 2019 and the first quarter
ended June 30, 2019, which are
available at www.sedar.com. The forward-looking statements
contained in this press release are made as of the date hereof and
Warrior Gold undertakes no obligation to update publicly or revise
any forward-looking statements or information, whether as a result
of new information, future events or otherwise, unless so required
by applicable securities laws.
This press release does not constitute an offer, invitation
or recommendation to subscribe for or purchase any securities and
neither this press release nor anything contained in it shall form
the basis of any contract or commitment. In particular, this press
release does not constitute an offer to sell, or a solicitation of
an offer to buy, securities in the United
States, or in any other jurisdiction in which such an offer
would be illegal.
SOURCE Warrior Gold Inc.
