Avidian Gold Provides Update on Non-Brokered $2.5M Private Placement Including Strategic Investment by Eric Sprott
Avidian Gold Provides Update on Non-Brokered $2.5M Private Placement
Including Strategic Investment by Eric Sprott
TORONTO, July 10, 2020 -- Avidian Gold Corp. (“Avidian” or the “Company”) (TSX-V: AVG) wishes to provide an update to
the previously announced (see July 6, 2020 news release) private placement of units of the Company (“ Units”) at $0.10 per
Unit for gross proceeds of up to $2,500,000 (the “ Offering”). Each Unit will consist of one common share of the Company (a
“Common Share ”) and one Common Share purchase warrant (a “Warrant ”) exercisable into a Common Share at a price of
$0.14 for twenty-four (24) months following the issuance of Warrants. The terms of the Warrants restrict the exercise of the
Warrants in a manner that causes the warrant holder to hold 20% or more of Common Shares without having previously
obtained required approvals in accordance with the policies of the TSX Venture Exchange.
The Company advises that it has now received subscriptions for the entirety of the Offering, including a subscription from Mr.
Eric Sprott. The Company expects to close the Offering next week.
The net proceeds from the Offering shall be primarily used for the development of Avidian’s mineral properties and for general
and administrative expenses.
The Offering is conditional upon receipt of required regulatory approvals, including the final approval of the TSX Venture
Exchange. The securities issued pursuant to the Offering will be subject to a four months and a day statutory hold period in
accordance with applicable Canadian securities laws.
Pursuant to the Offering, Mr. Sprott through 2176423 Ontario Ltd., a corporation that is beneficially owned by him, will acquire
20,000,000 Units for a total consideration of $2,000,000. Subsequent to the closing of the Offering, Mr. Sprott will beneficially
own or control 20,000,000 Common Shares and 20,000,000 Warrants representing approximately 16.75% of the issued and
outstanding Common Shares on a non-diluted basis and approximately 28.69% of the issued and outstanding Common
Shares on a partially diluted basis assuming exercise of the Warrants. Prior to the Offering, Mr. Sprott did not beneficially own
or control any securities of the Company.
The Units were acquired by Mr. Sprott for investment purposes. Mr. Sprott has a long-term view of the investment and may
acquire additional securities of Avidian including on the open market or through private acquisitions or sell securities of Avidian
including on the open market or through private dispositions in the future depending on market conditions, reformulation of
plans and/or other factors that Mr. Sprott considers relevant from time to time. For the purposes of this notice, the address of
Mr. Sprott is 200 Bay Street, Suite 2600, Royal Bank Plaza, South Tower, Toronto, Ontario M5J 2J1.
In satisfaction of the requirements of the National Instrument 62-104 – Take-Over Bids and Issuer Bids and National
Instrument 62-103 – The Early Warning System and Related Take-Over Bid and Insider Reporting Issues , an Early Warning
report respecting the acquisition of Units by and a copy of the early warning report may also be obtained by calling Mr.
Sprott’s office at (416) 945-3294 (200 Bay Street, Suite 2600, Royal Bank Plaza, South Tower, Toronto, Ontario M5J 2J1).
About Avidian Gold Corp.
Avidian 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 the Amanita gold property which is adjacent to Kinross Gold’s Fort Knox gold mine in Alaska and
the Jungo gold/copper property in Nevada.
The information in respect of the Golden Zone project is adopted from the Technical Report on the Golden Zone Property,
August 17, 2017, L. McGarry P.Geo & I. Trinder P.Geo, A.C.A Howe International Ltd (the “Technical Report ”).
Avidian is the majority owner of High Tide Resources, a private company with an option on the Labrador West iron ore property
and owns the base metal Strickland Property and the Black Raven gold property, all located in Newfoundland and Labrador,
Canada.
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. 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.
The technical information in this news release has been approved by Steve Roebuck, P.Geo and President of Avidian Gold,
who is a Qualified Person as defined in National Instrument 43-101 - Standards of Disclosure for Mineral Projects.
For further information, please contact:
Steve Roebuck, President
E: [email protected] or +1(905) 741-5458
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. Although these statements are based on information currently
available to the Company, the Company provides no assurance that actual results will meet management’s expectations.
Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results,
performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking
information. Forward looking information in this news release includes, but is not limited to, the Company’s objectives, goals or
future plans, statements, exploration results, potential mineralization, the estimation of mineral resources, exploration and
mine development plans, timing of the commencement of operations and estimates of market conditions. Factors that could
cause actual results to differ materially from such forward-looking information include, but are not limited to: the ability to
anticipate and counteract the effects of COVID-19 pandemic on the business of the Company, including without limitation the
effects of COVID-19 on the capital markets, commodity prices supply chain disruptions, restrictions on labour and workplace
attendance and local and international travel, failure to receive requisite approvals in respect of the Offering, failure to identify
mineral resources, failure to convert estimated mineral resources to reserves, the inability to complete a feasibility study which
recommends a production decision, the preliminary nature of metallurgical test results, delays in obtaining or failures to obtain
required governmental, environmental or other project approvals, political risks, uncertainties relating to the availability and
costs of financing needed in the future, changes in equity markets, inflation, changes in exchange rates, fluctuations in
commodity prices, delays in the development of projects, capital and operating costs varying significantly from estimates and
the other risks involved in the mineral exploration and development industry and those risks set out in the Company’s public
documents filed on SEDAR. Although the Company believes that the assumptions and factors used in preparing the forward-
looking information in this news release are reasonable, undue reliance should not be placed on such information, which only
applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time
frames or at all. 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 law.