Goldseek Resources Announces $850,000 Private Placement
November 6, 2020 – TheNewswire – London, Ontario – Abitibi Metals Corp. (CSE:GSK) (CNSX:GSK.CN) (“Goldseek” or the “Company”) announces that it plans to raise up to $850,000 in flow-through funds (the “Flow-Through Placement”) by way of a non-brokered private placement.
This Quebec Flow-Through Placement will consist of the sale of flow-through units at a price of $0.37 per flow-through unit with each unit consisting of one common share of the Company, which is a “flow-through” share for Canadian income tax purposes, and 1/2-transferrable common share purchase warrant.
Each whole warrant will entitle the holder to purchase one common share of the Company at a price of $0.60 per common share for a period of 2 years from closing. The warrants will be subject to accelerated expiry (the “Accelerated Expiry”) if the closing trading price of the Company’s shares is greater than $1.00 per common share for a period of 20 consecutive trading days (the “Acceleration Event”). The Company may, in its sole discretion, choose for the Accelerated Expiry to become effective, in which case the Company will give notice to the holders that the Acceleration Event has occurred, and that the Accelerated Expiry will cause the Warrants to expire 30 days thereafter.
A Finder’s fee may be paid on gross proceeds of the financing, as permitted by securities laws.
The Company intends to use the proceeds from the Flow-Through Placement to continue exploration and development of the Company’s Quebec properties.
The securities issued in connection with this transaction are subject to the Company’s filing requirements with the Canadian Securities Exchange, and all securities will be subject to a four-month statutory hold period after closing.
Goldseek’s President & CEO Jon Deluce states, “We appreciate the continued support of our institutional shareholders as we position the Company to benefit from being in the early stages of this gold bull market. We are well funded for continuous work programs through the end of 2021 to target grassroots discovery on our 4 projects. We continue to prepare for our December maiden drill program at our Bonanza Project (Urban Barry).”
About Abitibi Metals Corp.
Abitibi Metals Corp. is a Canadian exploration company with a portfolio of assets in Ontario and Quebec, Canada. By identifying four projects in world-class mining locations, Goldseek is poised to deliver shareholder value through rigorous exploration and development on these properties. Our mission is to find the next major discovery in the mining camps of Urban Barry, Quevillon and Detour Gold Trend in Quebec and Hemlo in Ontario.
ON BEHALF OF THE BOARD
Jonathon Deluce
Chief Executive Officer
Telephone: 226-271-5170
For more information, please contact:
Abitibi Metals Corp.
E-mail: [email protected]
The reader is invited to visit Goldseek’s web site https://www.goldseekresources.com/
Neither the Canadian Securities Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.