GFG Announces Private Placement Financing of up to C$3.0 Million
Media Release
Release: Immediate
NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRE S
GFG Announces Private Placement Financing of up to C$3.0
Million
November 9, 2021, Saskatoon, Saskatchewan, Canada: GFG Resources Inc. (TSXV: GFG)
(OTCQB: GFGSF) (“ GFG” or the “Company ”) announces a private placement to raise gross
proceeds of up to C$3.0 million (the “Offering”).
The Offering will consist of any combination of (i) units of the Company (“Units”) at a price of
C$0.145 per Unit; (ii) common shares of the Company that will qualify as "flow-through shares"
for the purposes of the Income Tax Act (Canada) (“FT Shares”) at a price of C$0.17 per FT Share;
and (iii) premium units of the Company (“ Premium Units”) at a price of C$0.207 per Premium
Unit, subject to maximum aggregate gross proceeds of C$3.0 million of which at least C$1.0
million will be raised through the issuance of Units. Each Unit shall consist of one common share
of the Company (which shall not be a “flow -through share”) and one -half of one share purchase
warrant, with each whole share purchase warrant (a “Warrant”) entitling the holder thereof to
acquire one additional common share of the Company (which shall not be a “flow-through share”)
at an exercise price of C$0.22 for a period of 24 months from the date of issuance. Each Premium
Unit shall consist of one FT Share (a “Premium FT Share”) and one-half of one Warrant.
If during the exercise period of the Warrants, but after the resale restrictions on the common shares
have expired, the closing price of the common shares is at a price equal to or greater than $0.36 for
a period of 10 consecutive trading days, GFG will have the right to accelerate the expiry date of the
Warrants by giving notice, via a new release, to the holders of the Warrants that the Warrants will
expire on the date that is 30 days after the issuance of said news release.
The gross proceeds raised from the sale of the FT Shares and Premium FT Shares will be used for
exploration activities in Ontario that will qualify as “Canadian Exploration Expenses” (within the
meaning of the Income Tax Act (Canada)). The net proceeds raised from the sale of the Units and
the Warrants comprising, in part, the Premium Units, will be used for exploration activities on the
Company’s projects in Ontario as well as for general working capital purposes.
The Offering is scheduled to close on or about November 30, 20 21 and is subject to certain
conditions, including, but not limite d to, the receipt of all necessary approvals, including the
approval of the TSX Venture Exchange. The Offering is being made by way of private placement
in Canada and such other jurisdictions as the Company may determine. The securities sold will not
be offered or sold in the United States, and will each be subject to a hold period expiring four
months and one day from their issuance.
The Company may pay finder's fees on a portion of the Offering of up to 6%. The finder's fees shall
be paid in accordance w ith applicable securities laws and the policies of the TSX Venture
Exchange.
It is anticipated that certain directors, officers and other insiders of the Company will 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 (the "Policy") and Multilateral Instrument 61-
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101-Protection of Minority Security Holders in Special Transactions ("MI 61-101") adopted in the
Policy. The Company intends to rely on t he 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).
This news release does not constitute an offer to sell or the solicitation of an offer to buy, nor
shall there be any sale of these securities, in any jurisdiction in which such offer, solicitation
or sale would be unlawful prior to registration or qualification under the securities laws of
such jurisdiction. The securities 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 may not be offered or sold within the United States unless an exemption from such
registration is available.
About GFG Resources Inc.
GFG is a North American precious metals exploration company focused on district scale gold
projects in tier one mining jurisdictions, Ontario and Wyoming. In Ontario, the Company operates
the Montclerg, Pen and Dore gold projects, each large and highly prospective gold properties within
the prolific gold district of Timmins, Ontario, Canada. The projects have similar geological settings
that host most of the gold deposits found in the Timmins Gold Camp which have produced over 70
million ounces of gold. The Company also owns 100% of the Rattlesnake Hills Gold Project, a
district scale gold exploration project located approximately 100 kilometres southwest of Casper,
Wyoming, U.S. In Wyoming, the Company has partnered with Group 11 through an option and
earn-in agreement to advance the Company’s Rattlesnake Hills Gold Project with a technology that
could revolutionize the gold mining industry. The geologic setting, alteration and mineralization
seen in the Rattlesnake Hills are similar to other gold deposits o f the Rocky Mountain alkaline
province which, collectively, have produced over 50 million ounces of gold.
For further information, please contact:
GFG Resources Inc.
Brian Skanderbeg, President & CEO
or
Marc Lepage, Vice President, Business Development
Phone: (306) 931-0930
Email: [email protected]
Website: www.gfgresources.com
Stay Connected with Us
Twitter: https://twitter.com/gfgresources
LinkedIn: https://www.linkedin.com/company/gfgresources/
Facebook: https://www.facebook.com/GFGResourcesInc/
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.
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CAUTION REGARDING FORWARD-LOOKING INFORMATION
All statements, other than statements of historical fact, contained in this news release constitute “forward -looking information” within
the meaning of applicable Canadian securities laws and “forward-looking statements” within the meaning of the United States Private
Securities Litigation Reform Act of 1995 (referred to herein as “forward-looking statements”). Forward-looking statements include, but
are not limited to, disclosure regarding the completion of the Offering and potential gross proceeds to be raised pursuant thereto, the
receipt of all applicable regulatory approvals, the prospective nature of the Company’s property interests, exploration plans and expected
results, conditions or financial performance that is based on assumptions about future economic conditions and courses of action; planned
use of proceeds, expenditures and budgets and the execution thereof. Generally, these forward-looking statements can be identified by
the use of forward -looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”,
“estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate” or “believes”, or the negative connotation thereof or variations
of such words and phrases or state that certain actions, events or results, “may”, “could”, “would”, “will”, “might” or “will be taken”,
“occur” or “be achieved” or the negative connotation thereof.
All forward -looking statements are based on various assumptions, including, without limitation, the expectations and beliefs of
management, the receipt of applicable regulatory approvals. availability of financing, the assumed long -term price of gold, that the
current exploration and other objectives concerning its mineral projects can be achieved and that its other corporate activit ies will
proceed as expected; that the current price and demand for gold will be sustained or will improve; the continuity of the price of gold and
other metals, economic and political conditions and operations ; the prospective nature of the Company’s properties, and that general
business and economic conditions will not change in a materially adverse manner.
Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results,
level of activity, performance or achievements of GFG to be materially different from those expressed or implied by such forw ard-
looking statements, including but not limited to: risks and uncertainties related to the completion of the Offering as presently proposed
or at all, the failure to obtain all applicable regulatory approvals ; actual results of current exploration activities; environmental risks;
future prices of gold; operating risks; accidents, labour issues and other risks of the mining industry; delays in obtaining government
approvals or financing; and other risks and unce rtainties. These risks and uncertainties are not, and should not be construed as being,
exhaustive.
Although GFG has attempted to identify important factors that could cause actual results to differ materially from those cont ained in
forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be
no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those
anticipated in such statements. In addition, forward -looking statements are provided solely for the purpose of providing information
about management’s current expectations and plans and allowing investors and others to get a better understanding of our oper ating
environment. Accordingly, readers should not place undue reliance on forward-looking statements.
Forward-looking statements in this news release are made as of the date hereof and GFG assume no obligation to update any forward -
looking statements, except as required by applicable laws.