Cassiar Gold Announces $1 Million Insider- Led Private Placement
Cassiar Gold Announces $1 Million Insider-
Led Private Placement
Calgary, Alberta--(Newsfile Corp. - July 21, 2022) -
Cassiar Gold Corp. (TSXV: GLDC) (OTCQX:
CGLCF)
("
Cassiar Gold
" or the "
Company
") has arranged an insider-led, non-brokered private
placement consisting of up to 1,428,571 flow-through units ("FT Units") at a price of C$0.70 per FT Unit
for gross proceeds of up to C$1 Million (the "Offering"). Insiders of the Company have committed to
purchase a minimum of C$500,000 of the FT Units with all proceeds to be used to fund ongoing
exploration and drill programs at its flagship Cassiar Gold Project in northern British Columbia, Canada.
Each FT Unit will consist of one common share of the Company issued on a "CEE flow-through" basis
pursuant to the Income Tax Act (Canada) and one-half of one common share purchase warrant.
Each
whole warrant will be exercisable by the holder to acquire one common share of the Company at a price
of C$0.90 cents for a period of 24 months following the closing date of the Offering. The securities
issued pursuant to the Offering will be subject to a four-month hold period under applicable securities
laws.
Marco Roque, President and CEO of Cassiar Gold, stated: "Thanks to the hard work of our dedicated
technical team at site, our 2022 drill campaign is advancing ahead of schedule with nearly 9,000 metres
already completed, putting us in a position to potentially expand our drill program beyond the original
target of 20,000 metres. The additional funding from this private placement will bolster our current
financial position and provide us with the opportunity to potentially add more metres to our drill program if
conditions allow.
The significant insider participation in this financing underscores the high conviction of
management and directors on the prospects of the district-scale Cassiar Gold Property."
Participation by insiders of the Company in the Offering will constitute a related party transaction as
defined in Multilateral Instrument 61-101 -
Protection of Minority Security Holders in Special
Transactions
("
MI 61-101
"). The Company intends to rely on exemptions from the formal valuation and
minority shareholder requirements provided under sections 5.5(a) and 5.7(1)(a) of MI 61-101 on the
basis that neither the fair market value of the gross securities to be issued under the Offering nor the
consideration to be paid by insiders of the Company will exceed 25% of the Company's market
capitalization.
Closing of the Offering is expected to occur on or before July 29, 2022, 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 ("TSXV").
The securities being offered have not been, nor will they be, registered under the United States
Securities Act of 1933, as amended, and may not be offered or sold in the United States or to, or for the
account or benefit of, U.S. persons absent registration or an applicable exemption from the registration
requirements. This news release shall not constitute an offer to sell or the solicitation of an offer to buy
nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale
would be unlawful.
About Cassiar Gold Corp.
Cassiar Gold Corp. is a Canadian gold exploration company holding a 100% interest in its flagship
Cassiar Gold Property located in British Columbia, Canada. The Cassiar Gold property spans 590 km
2
and consists of two main project areas: Cassiar North, which hosts a NI 43-101-compliant inferred
resource estimate of 1.4Moz at 1.14 g/t Au (cutoff grade of 0.5 g/t) known as the as the Taurus Deposit
(see National Instrument 43-101 Technical report on the Cassiar Gold property, April 28, 2022, by S.
Zelligan, J. Moors, C. Jolette, posted to SEDAR); and Cassiar South which hosts numerous gold
showings, historical workings, and exploration prospects. Historical underground mines in the Cassiar
South area have yielded over 315,000 oz of Au at average head grades of between 10 and 20 g/t Au
(BC Minfile), underscoring the high potential for further discovery and expansion of bonanza-grade
orogenic gold veins.
The Company also holds a 100% interest in the Sheep Creek gold camp located near Salmo, BC. The
Sheep Creek gold district ranks as the third largest past-producing orogenic gold district in BC with
historical gold production of 742,000 ounces gold at an average grade of 14.7 g/t gold from 1900 to
1951. Minimal exploration work has been conducted since the 1950s.
Cassiar Gold acknowledges, respects, and supports the rights of Traditional First Nations in the lands
and communities where we operate.
CONTACT INFORMATION
Cassiar Gold Corp.
Shirley Anthony
VP Investor Relations & Communications
1-778-999-2771
Forward-Looking Statements
This press release may contain forward-looking statements including those describing Cassiar's
future plans and the expectations of management that a stated result or condition will occur. Any
statement addressing future events or conditions necessarily involves inherent risk and uncertainty.
Actual results can differ materially from those anticipated by management at the time of writing due to
many factors, the majority of which are beyond the control of Cassiar and its management. In
particular, this news release contains forward-looking statements pertaining, directly or indirectly, to
the following: the Company's exploration plans and work commitments, the ability to close the Offering
in the amount anticipated or at all and the use of proceeds of the Offering.
Although Cassiar believes that the expectations and assumptions on which the forward-looking
statements are based are reasonable, undue reliance should not be placed on the forward-looking
statements because the Company can give no assurance that they will prove to be correct. Since
forward-looking statements address future events and conditions, by their very nature they involve
inherent risks and uncertainties, actual results could differ materially from those currently anticipated
due to a number of factors and risks. These include, but are not limited to, general economic, market
or business conditions, risks associated with the exploration and development industry in general
(e.g., operational risks in development, exploration and production; the uncertainty of mineral
resource estimates; the uncertainty of estimates and projections relating to production, costs and
expenses, and health, safety and environmental risks), constraint in the availability of services,
commodity price and exchange rate fluctuations, the current COVID-19 pandemic, changes in
legislation impacting the mining industry, adverse weather conditions and uncertainties resulting from
potential delays or changes in plans with respect to exploration or development projects or capital
expenditures.
Readers are cautioned that the foregoing list of risk factors should not be construed as exhaustive.
These statements speak only as of the date of this release or as of the date specified in the
documents accompanying this release, as the case may be. The Company undertakes no obligation
to publicly update or revise any forward-looking statements except as expressly required by
applicable securities laws.
Neither the 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.
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED STATES
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