SNWGF - Snowline Gold Corp. Announces C$25.0 Million Bought Deal Private Placement of Flow-Through Shares | Benzinga
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VANCOUVER, BC, April 3, 2024 /CNW/ - Snowline Gold Corp. (TSXV:SGD) (OTC:SNWGF) ("Snowline" or the "Company") is pleased to announce that it has entered into an agreement pursuant to which Cormark Securities Inc. and BMO Capital Markets, as co-lead underwriters, on behalf of a syndicate of underwriters (collectively, the "Underwriters"), have agreed to purchase, on a "bought deal" private placement basis, 3,205,000 "flow-through" shares of the Company (the "Charity FT Share") at a price of $7.80 per Charity FT Share ("Offering Price") for gross proceeds of $24,999,000 (the "Offering"). Each Charity FT Share will qualify as a "flow-through share" (within the meaning of subsection 66(15) of the Income Tax Act (Canada)).
The Underwriters will have the option, exercisable in whole or in part at any time up to 48 hours prior to the closing of the Offering, to arrange for the purchase of up to that number of Charity FT Shares at the Offering Price as is equal to 15% of the number of securities issued in connection with the Offering.
The Company will use an amount equal to the gross proceeds received by the Company from the sale of the Charity FT Shares, pursuant to the provisions in the Income Tax Act (Canada), to incur eligible "Canadian exploration expenses" that qualify as "flow-through mining expenditures" as both terms are defined in the Income Tax Act (Canada) (the "Qualifying Expenditures") related to the Company's projects in the Yukon Territory, on or before December 31, 2025, and to renounce all the Qualifying Expenditures in favour of the subscribers of the Charity FT Shares effective December 31, 2024.
The Offering is expected to close on or about April ...