Blackrock Announces $2.75 Million Private Placement; to Present at Metals Investor Forum
Blackrock Announces $2.75 Million Private Placement; to
Present at Metals Investor Forum
Vancouver, British Columbia--(Newsfile Corp. - May 8, 2020) -
Blackrock Gold Corp. (TSXV: BRC) (the "
Company
") is pleased
to announce a non-brokered private placement (the "
Offering
") of up to 13,750,000 units (the "
Units
") at a price of $0.20 per
Unit for gross proceeds of up to $2,750,000. Each Unit is comprised of one common share and one-half of one share purchase
warrant.
Each whole warrant will entitle the holder to acquire one additional common share in the capital of the Company at a
price of $0.30 per share for a period of three years from the date the Units are issued.
The Company is reserving the right to
increase the Offering to issue up to 17,500,000 Units at $0.20 per Unit to raise a total of up to $3,500,000.
The Offering is scheduled to close on or about May 22, 2020, and is subject to certain conditions including, but not limited to, the
receipt of all necessary approvals including the approval of the TSX Venture Exchange. The common shares to be issued under
the Offering will have a hold period of four months and one day from the closing. The net proceeds of the Offering will be used by
the Company to fund a planned 7,000 meter RC drilling program (
See news April 27, 2020
) and evaluate historic mineralized
mine dumps and tailings surface material (
See news May 7, 2020
) on the Company's Tonopah West property. In addition, the
Company is to continue to advance on its 2020 exploration program at the Silver Cloud property (see
news January 10, 2020
),
with additional proceeds to be used for general working capital.
The Company may pay finder's fees on a portion of the Offering of up to 7% in cash and, for those applicable, finder's warrants
equal to 7% of such Units placed by the finder, each finder’s warrant exercisable for one common share for a 3-year term at a
price of $0.30.
The finder's fees shall be paid in accordance with applicable securities laws and the policies of the TSX Venture
Exchange.
It is anticipated that certain directors, officers and other insiders of the Company may acquire Units under the Offering.
Such
participation will be considered to be "related party transactions" within the meaning of TSX Venture Exchange Policy 5.9 and
Multilateral Instrument 61-101-
Protection of Minority Security Holders in Special Transactions
("MI 61-101") adopted in the
Policy. The Company intends to rely on the exemptions from the formal valuation and minority shareholder approval
requirements of MI 61-101 contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101 in respect of related party participation in the
Offering as neither the fair market value (as determined under MI 61-101) of the subject matter of, nor the fair market value of the
consideration for, the transaction, insofar as it involves interested parties, is expected to exceed 25% of the Company's market
capitalization (as determined under MI 61-101).
The securities described herein have not been, and will not be, registered under the United States Securities Act of 1933, as
amended (the "
U.S. Securities Act
"), or any state securities laws, and accordingly, may not be offered or sold within the United
States except in compliance with the registration requirements of the U.S. Securities Act and applicable state securities
requirements or pursuant to exemptions therefrom. This press release does not constitute an offer to sell or a solicitation to buy
any securities in any jurisdiction.
Metals Investor Forum:
Blackrock would also like to announce that Andrew Pollard, President & CEO, has been invited by Brien Lundin, of the Gold
Newsletter, to present at the upcoming Metals Investor Forum (virtual) conference to be held on May 14
th
, 2020. A 10-minute
corporate presentation will be followed by a Q&A for investors.
For details or to register to attend, please go to
https://metalsinvestorforum.com/conferences/metals-investor-forum-may-2020/
About Blackrock Gold Corp.
Blackrock is a junior gold-focused exploration company that is on a quest to make an economic discovery. Anchored by a
seasoned Board, the Company is focused on its Nevada portfolio consisting of low-sulphidation epithermal gold & silver
projects located along on the established Northern Nevada Rift in north-central Nevada, and the Walker Lane trend in western
Nevada.
For further information, please contact:
Andrew Pollard, President & CEO
Blackrock Gold Corp.
Phone: 604 817-6044
Email:
FORWARD-LOOKING STATEMENTS
This news release contains "forward-looking statements" within the meaning of Canadian securities legislation. Such forward-
looking statements concern expected subscriptions and closing of the Offering, net proceeds from the Offering and the intended
use of proceeds. Such forward-looking statements or information are based on a number of assumptions which may prove to be
incorrect. Assumptions have been made regarding, among other things: conditions in general economic and financial markets;
timing and amount of capital expenditures; and effects of regulation by governmental agencies. The actual results could differ
materially from those anticipated in these forward-looking statements as a result of risk factors including: the availability of funds;
the timing and content of work programs; results of exploration activities of mineral properties; the interpretation of drilling results
and other geological data; and general market and industry conditions. Forward-looking statements are based on the
expectations and opinions of the Company's management on the date the statements are made. The assumptions used in the
preparation of such statements, although considered reasonable at the time of preparation, may prove to be imprecise and, as
such, readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date
the statements were made. The Company undertakes no obligation to update or revise any forward-looking statements included
in this news release if these beliefs, estimates and opinions or other circumstances should change, except as otherwise
required by applicable law.
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.
NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES
OR FOR DISSEMINATION IN THE UNITED STATES
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/55573