Cassiar Gold Closes Second Tranche of Upsized Private Placement
Cassiar Gold Closes Second Tranche of
Upsized Private Placement
Calgary, Alberta--(Newsfile Corp. - August 4, 2022) -
Cassiar Gold Corp. (TSXV: GLDC) (OTCQX:
CGLCF)
("
Cassiar Gold
" or the "
Company
") is pleased to announce that, further to its Press Releases
dated July 21 and 28, 2022, and subject to receiving final regulatory approvals, the Company has closed
the second and final tranche of its non-brokered private placement (the "Offering") by issuing 2,740,570
flow-through units ("FT Units") at a price of C$0.70 per FT Unit for gross proceeds of C$1,918,400.
Due to strong investor interest, the Company increased the aggregate size of the previously announced
Offering by an additional $732,400 to C$2,732,900 by issuing a total of 3,904,140 FT Units. All
proceeds will be used to fund ongoing exploration and drill programs at the Company's 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.
"We are so thankful in these turbulent times to have the steadfast support of insiders as well as both new
and existing investors who participated in this oversubscribed financing," stated Marco Roque,
President and CEO of Cassiar Gold. "The closing of this financing provides us with the opportunity to
potentially add more metres to our planned 20,000-metre drill campaign at our district-scale Cassiar
Gold Property and we look forward to reporting initial results from this program in the coming weeks."
Insiders of the Company purchased a total of 557,856 FT Units under the initial tranche of the Offering.
The issuance of securities to such persons constitutes a "related-party transaction" as defined in TSXV
Policy 1.1 and Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special
Transactions ("MI 61-101"). The Company is relying 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 second tranche of the Offering 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").
No
finder's fees were paid in connection with the Offering.
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, receipt of TSXV approvals,
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
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/132872