GFG Completes Second Tranche of Private Placement
Media Release
Release: Immediate
NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRES
GFG Completes Second Tranche of Private Placement
December 27, 2018, Saskatoon, Saskatchewan, Canada: GFG Resources Inc. (TSX-V: GFG)
(OTCQB: GFGSF) (“GFG” or the “Company”) announces that it has closed the previously
announced (see news releases dated December 7, 14 and 21, 2018) non-brokered private placement
of flow-through common shares of the Company (“FT Shares”) at a price of C$0.25 per FT Share
(the “Tranche B Offering”). Pursuant to the Tranche B Offering, the Company issued a total of
2,213,439 FT Shares for gross proceeds of C$ 560,000. In combination with the placement of FT
Shares at C$0.29 per FT Share that closed on December 21, 2018, t he total gross proceeds raised
in the Company’s private placement was C$1,995,500.
Gross proceeds raised under the Tranche B Offering will be used fo r exploration activities at the
Company’s Pen and Dore Gold Projects in Ontario that will qualify as “Canadian Exploration
Expenses” (within the meaning of the Income Tax Act (Canada)).
Related Party Transaction
In connection with the Tranche B Offering, Messrs. Brian Skanderbeg the CEO and a director of
the Company, Richard Johnson, the CFO of the Company and Arnold Klassen and Patrick Downey,
both directors of the Company (collectively the “Insiders”) have purch ased a total of 5 40,000 FT
Shares. Insiders’ participation in the Tranche B Offering constitutes a "related party transaction"
pursuant to 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 Company not being listed on specified
stock exchanges, including the Toronto Stock Exchange, the New York Stock Exchange, the
American Stock Exchange, the NASDAQ and certain overseas 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 insiders’ participation in the Tranche B Offering does not exceed 25%
of the market capitalization of the Company, as determined in accordance with MI 61-101.
The Tranche B Offering is subject to the receipt of final approval of the TSX Venture Exchange .
The Tranche B Offering was made by way of a private placement in Canada and no FT Shares were
sold in the United States. All FT Shares issued pursuant to the Tranche B Offering are subject to a
hold period expiring four months and one day from their issuance.
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.
2
GFG Resources 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
owns 100% of the Pen and Dore gold projects, two large and highly prospective gold properties
west of the prolific gold district of Timmins, Ontario, Canada. The Pen and the Dore gold projects
have the same geological setting that hosts most of the gold dep osits found in the Timmins Gold
Camp which have produced over 70 million ounces of gold. In Wyoming, the Company has
partnered with Newcrest Mining Ltd. through an option and earn- in agreement to advance the
Rattlesnake Hills Gold Project. The geologic set ting, alteration and mineralization seen in the
Rattlesnake Hills are similar to other gold deposits of the Rocky Mountain alkaline province which,
collectively, have produced over 50 million ounces of gold.
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.
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 St ates Private
Securities Litigation Reform Act of 1995 (referred to herein as “forward-looking statements”). Forward-looking statements include, but
are not limited to, the future price of gold, success of exploration activities and metallurgical test work, permitting time lines, currency
exchange rate fluctuations, requirements for additional capital, government regulation of exploration work, environmental ris ks,
unanticipated reclamation expenses, title disputes or claims and limitations on insurance cov erage. 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 “do es 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 assumed long-term price of gold, that the Company will receive required permits and access to surface rights, that the
Company can access financing, appropriate equipment and sufficient labour, and that the political environment within Canada a nd the
United States will continue to support the development of mining projects in Canada and the United States. In addition, the similarity
or proximity of other gold deposits to the Rattlesnake Hill Gold Project, the Pen Gold Project and the Dore Gold Project is not necessary
indicative of the geological setting, alteration and mineralization o f the Rattlesnake Hills Gold Project, the Pen Gold Project and the
Dore Gold Project.
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 forward -
looking statements, including but not limited to: 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 uncertainties. 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 assumes no obligation to update any forward-
looking statements, except as required by applicable laws.
For further information, please contact:
GFG Resources Inc.
Brian Skanderbeg, President & CEO
Phone: (306) 931-0930
or
Marc Lepage, Vice President, Business Development
Phone: (306) 931-0930
Email: [email protected]
Website: www.gfgresources.com
3