Avidian Gold Announces Completion of C$830,000 Non- Brokered Private Placement
Avidian Gold Announces Completion of C$830,000 Non-
Brokered Private Placement
NOT FOR DISTRIBUTION TO UNITED STATES WIRE SERVICES OR
DISSEMINATION IN THE UNITED STATES
TORONTO, ON / ACCESSWIRE / December 23, 2019 / Avidian Gold Corp. ("Avidian" or
the "Company") (TSX-V:AVG) is pleased to announce that on December 20, 2019, the
Company completed its previously announced non-brokered private placement of 8,300,000
flow-through units of the Company (the "Flow-Through Units") at a price of $0.10 per Flow-
Through Unit for gross proceeds of $830,000 (the "Private Placement"). Each Flow-Through
Unit consists of one common share in the capital of the Company to be issued on a "flow
through" basis pursuant to the Income Tax Act (Canada) and one-half common share purchase
warrant. Each whole warrant entitles its holder to purchase one common share in the capital of
the Company at an exercise price of $0.15 per share for a period of twenty-four (24) months
from the date of issuance.
In connection with the Private Placement, the Company will pay $25,500 in cash compensation
to eligible finders and issue to the eligible finders 255,000 compensation warrants (the "Finder's
Warrants"). Each Finder's Warrant is exercisable into one Common Share for a period of
twenty-four (24) months at an exercise price of $0.10 per Common Share.
The Flow-Through Units, Finder's Warrants and the securities underlying them will be subject to
a four (4) month hold period in accordance with applicable Canadian securities laws.
Related Party Transaction
In connection with the Private Placement, David Anderson, CEO and a director of the Company
has acquired 750,000 Flow-Through Units and Donna McLean, CFO of the Company, has
acquired 100,000 Flow-Through Units. The participation in the Private Placement, by Mr.
Anderson and Ms. McLean constitutes a "related party transaction", as such terms are defined by
Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions
("MI 61-101"). The Company is relying on an exemption from the formal valuation
requirements of MI 61-101 available on the basis of the securities of the Company not being
listed on specified markets, including the Toronto Stock Exchange, the New York Stock
Exchange, the American Stock Exchange, the NASDAQ or certain overseas stock exchanges.
The Company is also relying on the exemption from minority shareholder approval requirements
under MI 61-101 as the fair market value of the participation in the Private Placement by each of
Mr. Anderson and Ms. McLean does not exceed 25% of the market capitalization of the
Company.
This offering by Avidian is to assist their majority owned, private subsidiary, High Tide
Resources Corp. by way of a step-down financing arrangement. The Company exercised the
option disclosed in its news release of December 16, 2019 to increase the Private Placement of
6,000,000 Flow-Through Units by an additional 2,200,000 Flow-Through Units.
The net proceeds from the Offering shall be primarily used for funding exploration and
development work on the Labrador West iron ore project in Labrador and the Black Raven
property near Twillingate in north-central Newfoundland, the interests in which is held by High
Tide.
About Avidian Gold Corp.
Avidian is focused on and committed to the development of advanced stage mineral projects
throughout first world mining friendly jurisdictions using industry best practices combined with
a strong social license from local communities. It brings a disciplined and veteran team of project
managers together with a regional scale advanced stage gold-copper exploration portfolio in
Alaska. Avidian's Golden Zone project also hosts a NI 43-101 Indicated gold resource of
267,400 ounces (4,187,000 tonnes at 1.99 g/t Au) plus an Inferred gold resource of 35,900
ounces (1,353,000 tonnes at 0.83 g/t Au). Additional projects include Amanita which is adjacent
to Kinross Gold's Fort Knox gold mine in Alaska and Jungo in Nevada. The Labrador West
property located in Labrador and the Black Raven and Strickland properties located in
Newfoundland, are held within Hide Tide Resources Corp, a private company in which Avidian
holds a significant interest.
Further details on the Corporation and the individual projects, including the NI 43-101 Technical
report on the Golden Zone property, can be found on the Corporation's website at
www.avidiangold.com.
About High Tide Resources Corp.
High Tide is a private corporation, majority owned by Avidian, that is focused on and committed
to the development of advanced-stage mineral projects within Canada using industry best
practices combined with ensuring a strong social license from local communities. It is advancing
its Labrador West iron ore property, Strickland base metal property and Black Raven gold
property, all located in Newfoundland & Labrador, Canada. High Tide is majority owned by
Avidian.
The technical information contained in this news release has been approved by Dr. Tom
Setterfield, P.Geo., Vice President Exploration of Avidian, who is a Qualified Person as defined
in National Instrument 43-101 - Standards of Disclosure for Mineral Projects.
For further information, please contact:
Bonnie Hughes, Manager Investor Relations
Mobile: + 44 75382 96674
Email: [email protected]
Steve Roebuck
High Tide President & VP Exploration
Mobile: +1 (905) 741-5458
Email: [email protected]
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 news release.
Forward-looking information
This News Release includes certain "forward-looking statements". These statements are based
on information currently available to the Company and the Company provides no assurance that
actual results will meet management's expectations. Forward-looking statements include
estimates and statements that describe the Company's future plans, objectives or goals, including
words to the effect that the Company or management expects a stated condition or result to
occur. Forward-looking statements may be identified by such terms as "believes", "anticipates",
"expects", "estimates", "may", "could", "would", "will", or "plan". Since forward-looking
statements are based on assumptions and address future events and conditions, by their very
nature they involve inherent risks and uncertainties. Actual results relating to, among other
things, results of exploration, project development, reclamation and capital costs of the
Company's mineral properties, and the Company's financial condition and prospects including
the ability to close the Offering and secure additional financing as needed, could differ
materially from those currently anticipated in such statements for many reasons such as:
changes in general economic conditions and conditions in the financial markets; changes in
demand and prices for minerals; litigation, legislative, environmental and other judicial,
regulatory, political and competitive developments; technological and operational difficulties
encountered in connection with the activities of the Company; and other matters discussed in this
news release. This list is not exhaustive of the factors that may affect any of the Company's
forward-looking statements. These and other factors should be considered carefully and readers
should not place undue reliance on the Company's forward-looking statements. The Company
does not undertake to update any forward-looking statement that may be made from time to time
by the Company or on its behalf, except in accordance with applicable securities laws.
This news release does not constitute an offer of securities for sale in the United States. The
securities being offered have not been, nor will they be, registered under the United States
Securities Act of 1933, as amended, and such securities may not be offered or sold within the
United States absent U.S. registration or an applicable exemption from U.S. registration
requirements.
SOURCE: Avidian Gold Corp.