1911 GOLD Corporation Announces Closing of $5.2 Million "Bought Deal" Private Placement of Flow-Through Shares
1911 GOLD CORPORATION ANNOUNCES CLOSING OF $5.2 MILLION "BOUGHT DEAL" PRIVATE
PLACEMENT OF FLOW-THROUGH SHARES
Not for distribution to United States news wire services or for dissemination in the United States
Toronto, Ontario, July 14, 2020 – 1911 Gold Corporation ("1911 Gold " or the " Company") (TSXV:
AUMB) is pleased to announce that it has closed its previously announced "bought deal" private placement
of 8,200,000 common shares in the capital of the Company that will qualify as "flow-through shares" (within
the meaning of subsection 66(15) of the Income Tax Act (Canada)) (collectively, the " Flow-Through
Shares") for aggregate gross proc eeds of $5,208,000 (the " Offering"). The Flow-Through Shares were
issued in two tranches with tranche one consis ting of 4,275,000 Flow-Through Shares (the " Premium FT
Shares") issued to purchasers resident in Manitoba at a price of $0.75 per Premium FT Share for aggregate
gross proceeds of $3,206,250 and tranche two consisting of 3,925,000 Flow-Through Shares (the "National
FT Shares") issued to purchasers resident outside of Manitoba at a price of $0.51 per National FT Share
for aggregate gross proceeds of $2,001,750.
Canaccord Genuity Corp., BMO Capital Markets and Stifel GMP acted as underwriters (collectively, the
"Underwriters") in connection with the Offering pursuant to the terms of an underwriting agreement dated
July 14, 2020. In consideration for their services in connection with the Offering, the Company paid the
Underwriters a cash commission equal to 4.7% of th e aggregate gross proceeds from the sale of Flow-
Through Shares, and a reduced cash commission equal to 2.0% of the aggregate gross proceeds from the
sale of Flow-Through Shares to certain purchasers on the "President's List". As additional consideration for
their services in connection with the Offering, the Company issued the Underwriters non-transferable broker
warrants of the Company (" Broker Warrants") equal to 4.0% of the aggregate number of Flow-Through
Shares issued, and a reduced number of Broker Warrants equal to 2.0% of the aggregate number of Flow-
Through Shares issued to certain purchasers on the "President's List". Each Broker Warrant is exercisable
to acquire one common share in the capital of the Com pany at an exercise price of $0.60 per share until
January 14, 2022.
The gross proceeds from the sale of the Flow-Through Shares will be used by the Company to incur eligible
"Canadian exploration expenses" (as defined in the Income Tax Act (Canada)) that w ill qualify as "flow-
through mining expenditures" (as defined in the Income Tax Act (Canada) and, in respect of the Premium
FT Shares, subsection 11.7(1) of The Income Tax Act (Manitoba)) (the "Qualifying Expenditures") related
to the Company's projects in Manitoba and, in respect of proceeds from the sale of the National FT Shares,
Ontario. All Qualifying Expenditures will be renounced in favour of the subscriber s of the Flow-Through
Shares effective December 31, 2020.
The Offering was made by way of private placement in Canada pursuant to applicable exemptions from the
prospectus requirements under applicable Canadian secu rities laws. The securities issued under the
Offering are subject to a hold period under applicable Canadian securities la ws which will expire on
November 15, 2020. The Offering is subject to final acceptance of the TSX Venture Exchange.
Blair Schultz, a director of the Company, Michael Hoffman, a director of the Company, and Shaun Heinrichs,
an officer of the Company, subscribed for 100,0 00 National FT Shares, 50,000 National FT Shares and
30,000 National FT Shares, respectively, under the Offering on the same terms as arm's length investors.
The participation of each of Messrs. Schultz, Hoffman and Heinrichs in the Offering constitutes a "related
party transaction" for the purposes of Multilateral Instrument 61-101 - Protection of Minority Security Holders
in Special Transactions ("MI 61-101"). The Company is exempt from the requirements to obtain a formal
valuation or minority shareholder approval in connection with the Offering in reliance on sections 5.5(b) and
5.7(1)(a), respectively, of MI 61-101, as no securities of the Company are listed or quoted on the specified
markets and neither the fair market value of the securities issued to Messrs. Schultz, Hoffman and Heinrichs
nor the fair market value of the consideration for the securities issued to Messrs. Schultz, Hoffman and
Heinrichs exceeds 25% of the Company's market capita lization as calculated in accordance with MI 61-
101. The Company did not file a material change report more than 21 days before the expected closing
date of the Offering as the aforementioned insider participation had not been confirmed at that time and the
Company wished to close the Offering as expeditiously as possible.
The securities offered have not been registered u nder the United States Securities Act of 1933, as
amended, or any state securities law, and may not be offered or sold in the United States absent registration
or an exemption from such registration requirements. This news release shall not constitute an offer to sell
or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such
offer, solicitation or sale would be unlawful.
About 1911 Gold Corporation
1911 Gold is a junior gold producer and explorer t hat owns the True North mine and mill complex, and is
reprocessing historic tailings on a seasonal basis. In addition to operating True North at Bissett, Manitoba,
1911 Gold holds approximately 54,000 hectares of highly prospective land within and adjacent to the Rice
Lake greenstone belt. 1911 Gold believes its land package is a prime exploration opportunity, with potential
to develop a mining district centred on its True North facility. The Company also owns the Tully project near
Timmins, Ontario, and intends to focus on both orga nic growth opportunities and accretive acquisition
opportunities in North America.
1911 Gold's True North complex and exploration land package are located within the traditional territory of
the Hollow Water First Nation, signatory to Treaty No. 5 (1875-76). 1911 Gold looks forward to maintaining
open, co-operative and respectful communication with the Hollow Water First Nation in order to build
mutually beneficial working relationships.
ON BEHALF OF THE BOARD OF DIRECTORS
Ron Clayton
President and CEO
For further information, please contact:
Shaun Heinrichs
Chief Financial Officer
(604) 674-1293
www.1911gold.com
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
This news release may contain forward-looking st atements. Often, but not always, forward-looking
statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is
expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate",
or "believes", or describes a "goal", or variation of such words and phras es or state that certain actions,
events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved.
All forward-looking statements reflect the Compan y's beliefs and assumptions based on information
available at the time the statements were made. Actual results or events may differ from those predicted in
these forward-looking statements. A ll of the Company's forward-looking statements are qualified by the
assumptions that are stated or inherent in such forward-looking statements, including the assumptions
listed below. Although the Company believes that thes e assumptions are reasonable, this list is not
exhaustive of factors that may affect any of the forward-looking statements.
Forward-looking statements involve known and unknown risks, future events, conditions, uncertainties and
other factors which may cause the actu al results, performance or achievements to be materially different
from any future results, prediction, projection, forecast, performance or achievements expressed or implied
by the forward-looking statements. All statements that address expectations or projections about the future,
including, but not limited to, statements with respect to the use of proceeds of the Offering, the timing and
ability of the Company to receive necessary regulator y approvals, the tax treat ment of the Flow-Through
Shares, the timing for the Qualifying Expenditures to be renounced in favour of the subscribers and the
plans, operations and prospects of the Company, are forward-looking statements. Although 1911 Gold has
attempted to identify important factors that could cause actual actions, events or results to differ materially
from those described in forward-looking statements, there may be other factors that cause actions, events
or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking
statements will prove to be accurate, as actual results and future events could differ materially from those
anticipated in such statements. Ac cordingly, readers should not place undue reliance on forward-looking
statements.
All forward-looking statements contained in this news release are given as of the date hereof. The Company
disclaims any intention or obligation to update or revise any forward-looking statements whether as a result
of new information, future events or otherwise, except in accordance with applicable securities laws.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies
of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE: 1911 Gold Corporation