C:CC - CONTACT GOLD Announces up to $1 Million Non-Brokered Private Placement Financing
(TheNewswire)
Vancouver, B.C. - TheNewswire - (June 21, 2022) – Contact Gold Corp. (the “Company” or“Contact Gold”) (TSXV:C ) ; ( OTC:CGOLF) is pleased to announce anon-brokered private placement (the "Offering") of up to20,000,000 units (“Units”) at a price of $0.05 per Unit (the“Offering Price”) for gross proceeds of up to $1,000,000.
Each Unit will consist of one common share of theCompany (a “Common Share”) and one half of one Common Sharepurchase warrant (each whole Common Share purchase warrant, a“Warrant”), with each Warrant entitling the holder to purchase anadditional Common Share at a price of $0.075 pershare for a period of 24 months from the closing date (the “ExpiryDate”).
The net proceeds of the Offering are expected to beused to undertake further drilling at Contact Gold’s Green Springsgold project & continued exploration at the resource stage PonyCreek gold project, each located in Nevada, and for general workingcapital purposes.
The securities issued pursuant to the Offering will besubject to a four month and one day statutory hold period inCanada. Completion of the Offering is subject to the receipt of allnecessary approvals, including the conditional approval of the TSXVenture Exchange (the “TSXV”) .
Certain persons may be eligible to receive finder fees,payable in cash, representing up to 6% of the proceeds placed by suchfinders, in connection with the Offering. In addition, the Company mayalso issue to certain finders such number of compensation warrants(the “Broker Warrants”) as is equal to 6% of the number of Unitssold pursuant to the Offering, at an exercise price of $0.075 for aperiod of 24 months following the closing of the Offering.
Closing of the Offering is expected to occur on orabout July 27, 2022, and remains subject to the final approval of theTSXV.
The offered securities have not been, nor will they be,registered under the United States Securities Act of 1933, as amended(the “Securities Act”) or any state securities laws, and may notbe offered or sold to, or for the account or benefit of, any person inthe United States or any “U.S person”, as such term is defined inRegulation S under the Securities Act, absent registration or anapplicable exemption from registration requirements. Offers and salesin the United States will be limited to institutional accreditedinvestor. This press release shall not constitute an offer to sellor the solicitation of an offer to buy nor shall there be any sale ofthe securities in any state in which such offer, solicitation or salewould be unlawful.
About Contact Gold Corp.
Contact Gold is an exploration company focused onmaking district scale gold discoveries in Nevada. Contact Gold’sextensive land holdings are on the prolific Carlin and Cortez goldtrends which host numerous gold deposits and mines. Contact Gold’sland position comprises approximately 140 km 2 of target richmineral tenure hosting numerous known gold occurrences, ranging fromearly- to advanced-exploration and resource definition stage.
Additional information about the Company is availableat www.contactgold.com .
For more information, please contact: +1 (604)449-3361
Matthew Lennox-King – President & CEO
E-mail: info@ContactGold.com
Neither the TSXV nor its RegulationServices Provider (as that term is defined in the policies of theTSXV) accepts responsibility for the adequacy of this release. Nostock exchange, securities commission or other regulatory authorityhas approved or disapproved the information contained herein.
Cautionary Note RegardingForward-Looking Information
This news release contains"forward-looking information" and "forward-lookingstatements" (collectively, "forward-lookingstatements") within the meaning of the applicable Canadiansecurities legislation. All statements, other than statements ofhistorical fact, are forward-looking statements and are based onexpectations, estimates and projections as at the date of this newsrelease. Any statement that involves discussions with respect topredictions, expectations, beliefs, plans, projections, objectives,assumptions, future events or performance (often but not always usingphrases such as "expects", or "does not expect","is expected", "anticipates" or "does notanticipate", "plans", "budget","scheduled", "forecasts", "estimates","believes" or "intends" or variations of suchwords and phrases or stating that certain actions, events or results"may" or "could", "would","might" or "will" be taken to occur or beachieved) are not statements of historical fact and may beforward-looking statements. In this news release, forward-lookingstatements relate, among other things, to the Offering generally, theanticipated closing and successful completion of the Offering, the useof proceeds therefrom, receipt of applicable regulatory approvalsincluding TSXV conditional approval, and proposed explorationactivities of the Company on the Green Springs and Pony Creekproperties and the results thereof.
These forward-looking statements arebased on reasonable assumptions and estimates of management of theCompany at the time such statements were made. Actual future resultsmay differ materially as forward-looking statements involve known andunknown risks, uncertainties and other factors which may cause theactual results, performance or achievements of the Company tomaterially differ from any future results, performance or achievementsexpressed or implied by such forward-looking statements. Such factors,among other things, include: impacts arising from the globaldisruption caused by the Covid-19 coronavirus outbreak, and theconflict in Europe; fluctuations in general macroeconomic conditions;fluctuations in securities markets; fluctuations in spot and forwardprices of gold, silver, base metals or certain other commodities;fluctuations in currency markets (such as the Canadian dollar toUnited States dollar exchange rate); change in national and localgovernment, legislation, taxation, controls, regulations and politicalor economic developments; risks and hazards associated with thebusiness of mineral exploration, development and mining (includingenvironmental hazards, industrial accidents, unusual or unexpectedformations pressures, cave-ins and flooding); inability to obtainadequate insurance to cover risks and hazards; the presence of lawsand regulations that may impose restrictions on mining; employeerelations; relationships with and claims by local communities andindigenous populations; availability of increasing costs associatedwith mining inputs and labour; the speculative nature of mineralexploration and development (including the risks of obtainingnecessary licenses, permits and approvals from governmentauthorities); and title to properties. Although the forward-lookingstatements contained in this news release are based upon whatmanagement of the Company believes, or believed at the time, to bereasonable assumptions, the Company cannot assure shareholders thatactual results will be consistent with such forward-lookingstatements, as there may be other factors that cause results not to beas anticipated, estimated or intended. Readers should not place unduereliance on the forward-looking statements and information containedin this news release. The Company assumes no obligation to update theforward-looking statements of beliefs, opinions, projections, or otherfactors, should they change, except as required by law.
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