NOT FOR DISTRIBUTION IN THE UNITED STATES OR ON US NEWS
SASKATOON, Saskatchewan, Oct. 6, 2022 (GLOBE NEWSWIRE) — GFG Resources Inc. GFG GFGSF (“GFG” or the “Company”) has completed the oversubscribed private placement financing (the “offer“) (see press releases dated August 30, 2022 and October 5, 2022) for gross proceeds of $2,051,743. As part of the offering, GFG is pleased to announce that its strategic investor, Alamos Gold Inc. AGIAGI (“Alamos”)took part in the offer.
“The Company is pleased to have completed the oversubscribed financing and is grateful for the continued support of our long-standing shareholders and new owners during these challenging market conditions,” said Brian Skanderbeg, President and CEO of GFG. “The support of Alamos, long-term shareholders and insider participation is a testament to the quality of our assets, our team and our confidence in the potential to delineate Timmins’ next gold deposit, testing multiple targets for a new discovery within our property District-scale gold arm.”
Pursuant to the Offer, GFG has (i) issued 7,200,909 units of the Company (“Units”) at a price of $0.11 per unit for gross proceeds of $792,100; (ii) 4,627,153 common shares of the Company for purposes of the Income Tax Act (Canada) (“FT Shares”) at a price of $0.13 per FT Share for gross proceeds of $601,530; and (iii) 4,183,810 Company Award Units (“Premium Units”) at a price of $0.1573 per premium unit for gross proceeds of $658,113.
The gross proceeds from the sale of the FT Shares and Premium FT Units will be used for exploration activities in Ontario, which are classified as “Canadian Exploration Expenditure” (as Income Tax Act (Canada)). The net proceeds from the sale of the Units and the exercise of the Warrants, arising in part from…
