Allegiant Gold Announces Closing of $3,000,000 Non-Brokered Private Placement
Allegiant Gold Announces Closing of
$3,000,000 Non-Brokered Private Placement
Vancouver, British Columbia / July 7, 2020 - AOOegLaQW GROd LWd. (³AOOegLaQW´ RU WKe ³CRPSaQ\´) (AUAU:
TSX-V) (AUXXF: OTCQX) announces that, further to its news releases of May 26, 2020 and June 12, 2020, it has
closed the final tranche of its non-brokered SULYaWe SOacePeQW (WKe ³Private Placement´) issuing an additional
6,842,000 XQLWV (WKe ³Units´) aW CAD$0.25 SeU UQLW fRU gURVV SURceedV Rf CAD$1,710,500. The Company issued a
total of 12,006,992 Units in both tranches of the Private Placement raising total gross proceeds of CAD$3,001,748.
Each Unit consists Rf RQe cRPPRQ VKaUe (WKe ³Shares´) aQd RQe-half of one non-transferable common share
SXUcKaVe ZaUUaQW (WKe ³Warrants´) ZLWK eacK whole Warrant entitling the holder to purchase one Share of the
Company at a price of CAD$0.40 per Share for a period of 18 months from the date of closing of the Private
Placement, provided that in WKe eYeQW WKaW WKe cORVLQg SULce Rf WKe CRPSaQ\¶V SKaUeV RQ WKe TSX VeQWXUe E[cKaQge
(WKe ³Exchange´) (RU VXcK RWKeU e[cKaQge RQ ZKLcK WKe CRPSaQ\¶V SKaUeV Pa\ becRPe WUaded) LV CAD$0.60 or
greater per Share during any ten (10) consecutive trading day period at any time subsequent to four months and one
day after the closing date, the Warrants will expire at 4:00 p.m. (Vancouver time) on the 30th day after the date on
which the Company provides notice of such accelerated expiry to the holders of the Warrants.
³We are happy to have closed the $3 million private placement which included a great balance between retail and
LQVWLWXWLRQaO LQYeVWRUV,´ cRPPeQWed PeWeU GLaQXOLV, CEO Rf AOOegLaQW GROd. ³IQcOXdLQg WKLV UeceQW fXQd UaLVe, Ze
expect to have over $4.5 million in cash and liquid marketable securities allowing us to advance our projects well
into 2021. We looN fRUZaUd WR SURYLdLQg RXU VKaUeKROdeUV ZLWK aQ XSdaWe LQ WKe cRPLQg ZeeNV,´ added Mr. Gianulis.
All securities issued will be subject to a four month hold period pursuant to securities laws in Canada.
The Company intends to use the proceeds from the Private Placement to continue exploration on the Company's
flagship Eastside property and general working capital. Specifically, the Company will be focused on expansion of
the permitted area around the original pit zone with a goal of resource expansion, testing new high priority target
areas to the west and east of the original resource and further increasing investor awareness of Allegiant and the
Eastside project.
The Company paid additional fLQdeU¶V fees of $78,300 and 313,200 fLQdeU¶V ZaUUaQWV (WKe ³FLQdeU¶V WaUUaQWV´) WR
Beacon Securities Limited, Canaccord Genuity Corp. and PI Financial Corp.
Insiders of the Company subscribed for a total of 950,000 Units. As a result, the Private Placement is a related party
transaction (as defined under Multilateral Instrument 61-101 Protection of Minority Security Holders in Special
Transactions (³MI 61-101´). TKe CRPSaQ\ UeOLed XSRQ WKe ³FaLU MaUNeW VaOXe NRW MR Ue TKaQ $2,500,000´
exemptions from the formal valuation and minority shareholder approval requirements, respectively, under MI 61-
101.
ABOUT ALLEGIANT
Allegiant owns 100% of 10 highly-prospective gold projects in the United States, 7 of which are located in the
mining-friendly jurisdiction of Nevada. Three of AOOegLaQW¶V projects are farmed-out, providing for cost reductions
and cash-flow. AOOegLaQW¶V flagship, district-scale Eastside project hosts a large and expanding gold resource and is
located in an area of excellent infrastructure. Preliminary metallurgical testing indicates that both oxide and sulphide
gold mineralization at Eastside is amenable to heap leaching.
ON BEHALF OF THE BOARD
Peter Gianulis CEO
For more information contact:
Investor Relations
(604) 634-0970 or
1-888-818-1364
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
The securities referred to in this news release have not been, nor will they be, registered under the United States
Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the
account or benefit of, U.S. persons absent U.S. registration or an applicable exemption from the U.S. registration
requirements.
This news release does not constitute an offer for sale of securities for sale, nor a solicitation for offers to buy any
securities. Any public offering of securities in the United States must be made by means of a prospectus
containing detailed information about the company and management, as well as financial statements.