Goldshore Announces New Strategic Partner and Non-Brokered Private Placement of $3.75 Million to Fully Fund Development Through 2025
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U.S.
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Goldshore Announces New Strategic Partner and Non-Brokered
Private Placement of $3.75 Million to Fully Fund Development
Through 2025
VANCOUVER, B.C., November 2, 202 3: Goldshore Resources Inc. (TSXV: GSHR /
OTC Markets: GSHRF / FSE: 8X00) (“Goldshore” or the “ Company”) is pleased to
announce a non-brokered private placement (the “ Private Placement”), for aggregate
gross proceeds of $3,750,000. In connection with Private Placement, the Company will
issue the following securities (the “Offered Securities”):
(i) 37,500,000 units of the Company (“ Units”) at a price of $0. 10 per Unit. Each
Unit consists of one common share (each, a “ Common Share ”) and one
common share purchase warrant (each whole warrant, a “Warrant”); and
(ii) Each Warrant will entitle the holder thereof to purchase one Common Share (a
“Warrant Share”) at an exercise price of $0.13 per Warrant Share for thirty-six
(36) months from the date of closing.
Fully Funded Through 2025
The net proceeds from the Private Placement will be used to continue to advance the
Moss Gold Project through development of a new resource model and a new mineral
resource estimation (“MRE”); in addition to continuing the engineering and metallurgical
studies being done on various leach methodologies (including heap leach) and ultimately
factoring this new information into a preliminary economic assessment ( “PEA”). With
80,000 meters of drilling completed and $48 million spent directly in the ground defining
the current MRE; Goldshore is well positioned to achieve meaningful project milestones
over the next 24 months with minimal cash expenditures and within the net proceeds and
current cash balances of the Company.
Strategic Partnership
The Company announces that it has engaged with a strategic natural resources private
capital group (the “ Strategic Advisor ”) participating, in aggregate, in the Private
Placement for $3,000,000 or 30,000,000 Units, with a long-term financial commitment to
unlocking the value of the Moss Gold Project and delivering increased return to all
stakeholders.
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Board Changes
The Company also announces that Michael Michaud has stepped down from the Board
as an appointee of Wesdome Gold Mines Ltd. (“Wesdome”). Wesdome has advised that
it does not intend to nominate a replacement at this time . Kyle Hickey will be appointed
to the Goldshore Board of Directors upon closing of the Private Placement. Mr. Hickey
has been a professional advisor to board s of directors, executive management teams,
and private and public capital on a wide range of capital structure solutions including
equity, debt, and hybrid financial instruments, as well as merger and acquisition
transactions.
President and CEO Brett Richards stated: “We welcome this partnership with our new
strategic shareholder s, who are committed to advancing the project through its next
stages of development. On behalf of the Goldshore directors, we would like to thank Mike
for his tenure on the Board, as his technical and commercial approach has helped guide
the Company since inception . We would also like to welcome Kyle to the Goldshore
board. Kyle has extensive experience in the commodity and resource capital markets ,
financing assets through all stages of development from resource definition to
construction and project finance, and long -term operating capital structures. This
financing and partnership represents a new phase for Goldshore and is key to unlocking
long-term value and driving success.”
PEA and Resource Update
As a result of the new financial and strategic commitment in Goldshore, the Company is
reviewing the current PEA in an effort to rescope and optimize the Moss Gold Project
under multiple operational and economic parameters. To that end, the Company has
engaged A PEX Geoscience to prepare a new resource model and a new MRE. The
Company has also engaged the expertise of Kappes Cassiday & Associates, leaders in
heap leach engineering and technology, to conduct detailed metallurgical test work to
determine the efficacy of heap leaching the lower grade materi al contained in the Moss
Gold deposit. Once the results from these activities are received , the Company will
determine its next course of development.
Vice President, Exploration, Pete Flindell : “We welcome our new strategic partner s, as
this commitment allows us to recalibrate the scope of the future project we want to take
to feasibility study. We have a significant portion of high-grade mineralization in the shear
zones (3.35M oz Au or 55% of the current mineral resource) with an average head grade
of 1.84 g/t Au . This creates the opportunity for a hybrid process with a small flotation,
regrind and carbon in leach plant for the high-grade mineralization, and a large heap leach
operation for the low-grade material.”
Additional Financing Details
Eventus Capital Corp. has been appointed as a finder in connection with the Private
Placement. The Company may pay a finder’s fee of 6% in either cash or in Units of the
gross proceeds received by the Company from the Private Placement . The securities
issued pursuant to the Private Placement will be subject to a four-month and one day hold
period under applicable securities laws in Canada. Closing of the Financing is expected
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to occur on or about November 14, 2023 and is subject to approval by the TSX Venture
Exchange.
Qualified Person
Mr. Flindell, PGeo, MAusIMM, MAIG, Vice-President, Exploration, of the Company, and
a qualified person under National Instrument 43 -101, has approved the scientific and
technical information contained in this news release.
About Goldshore
Goldshore is an emerging junior gold development company and owns 100% of the Moss
Gold Project located in Ontario. The Company is w ell-financed and supported by an
industry-leading management group, board of directors , and advisory board. Goldshore
is well positioned to advance the Moss Gold Project through the next stages of exploration
and development.
For More Information – Please Contact:
Brett A. Richards
President, Chief Executive Officer and Director
Goldshore Resources Inc.
P. +1 604 288 4416 M. +1 905 449 1500
W. www.goldshoreresources.com
Facebook: GoldShoreRes | Twitter: GoldShoreRes | LinkedIn: goldshoreres
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Cautionary Note Regarding Forward-Looking Statements
This news release contains statements that constitute “forward-looking statements.” Such forward
looking statements involve known and unknown risks, uncertainties and other factors that may
cause the Company’s actual results, performance or achievements, o r developments to differ
materially from the anticipated results, performance or achievements expressed or implied by
such forward -looking statements. Forward looking statements are statements that are not
historical facts and are generally, but not alway s, identified by the words “expects,” “plans,”
“anticipates,” “believes,” “intends,” “estimates,” “projects,” “potential” and similar expressions, or
that events or conditions “will,” “would,” “may,” “could” or “should” occur.
Forward-looking statements in this news release include, among others, statements relating to
expectations regarding the exploration and development of the Moss Gold Project, the release of
an updated mineral resource estimate and preliminary economic assessment, and other
statements that are not historical facts. By their nature, forward-looking statements involve known
and unknown risks, uncertainties and other factors which may cause our actual results,
performance or achievements, or other future events, to be materially different from any future
results, performance or achievements expressed or implied by such forward-looking statements.
Such factors and risks include, among others: the Company may require additional financing from
time to time in order to con tinue its operations which may not be available when needed or on
acceptable terms and conditions acceptable; compliance with extensive government regulation;
domestic and foreign laws and regulations could adversely affect the Company’s business and
results of operations; the stock markets have experienced volatility that often has been unrelated
to the performance of companies and these fluctuations may adversely affect the price of the
Company’s securities, regardless of its operating performance; and the impact of COVID-19.
The forward-looking information contained in this news release represents the expectations of the
Company as of the date of this news release and, accordingly, is subject to change after such
date. Readers should not place undue importance on forward-looking information and should not
rely upon this information as of any other date. The Company undertakes no obligation to update
these forward-looking statements in the event that management's beliefs, estimates or opinions,
or other factors, should change.