Fosterville South Closes Oversubscribed $7.85 Million Financing
Fosterville South Closes Oversubscribed $7.85
Million Financing
/NOT FOR DISTRIBUTION TO
UNITED STATES
NEWSWIRE SERVICES OR FOR
DISSEMINATION IN
THE UNITED STATES
/
VANCOUVER, BC
,
July 21, 2020
/CNW/ -
Fosterville South Exploration Ltd.
("Fosterville South"
or the "Company") (TSXV: FSX) (OTC: FSXLF) is pleased to announce that it has closed its
previously announced private placement financing (the "Offering") by issuing a total of 1,962,500
units (the "Units") at a price of
$4.00
per Unit for gross proceeds of
$7,850,000
.
Highlights:
Strong Participation from Current Large Shareholders
Multiple New Institutional Investors Added to Share Registry
Strong Balance Sheet and Cash Position and No Debt
Fosterville South Chief Executive Officer and Director, Bryan Slusarchuk states,
"We thank existing
large shareholders, new investors and the syndicate of agents for their support of our exploration
efforts via this oversubscribed financing. The strong demand for this private placement is a
testament to the quality of assets and premier land package assembled over a multi-year period,
which provide a great foundation for our growth plans. Fosterville South is in a very active phase
on the ground, with multiple drills turning and we are doing so with a strong balance sheet, a
strong cash position and no debt. We look forward to keeping you updated as we progress."
Each Unit consists of one common share (each, a "Common Share"); and one-half of one common
share purchase warrant (each whole common share purchase warrant, a "Warrant"). Each Warrant
will entitle the holder to purchase a Common Share at an exercise price of
$4.95
for a period of 24
months ending
July 21, 2022
.
Clarus Securities Inc. acted as Lead Agent on behalf of a syndicate of agents that included
Canaccord Genuity Corp., PI Financial Corp., Eventus Capital Corp. and Mackie Research Capital
Corporation. Fosterville South paid the syndicate of agents a cash commission of
$485,870
and
issued a total of 121,468 common share purchase warrants (the "Broker Warrants"), with each
Broker Warrant exercisable at
$4.00
per Common Share for a period of 24 months ending
July 21,
2022
.
The securities issued under the Offering will be subject to restrictions on resale expiring on
November 22
, 2020. Fosterville South intends to use the net proceeds of the offering for exploration
and for general working capital purposes.
The securities referred to in this news release 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 within
the United
States
or to, or for the account or benefit of, U.S. persons absent U.S. registration or an applicable
exemption from the U.S. registration requirements. This release does not constitute an offer for sale
of, nor a solicitation for offers to buy, any securities in
the United States
.
About Fosterville South Exploration Ltd.
Fosterville South has two large, 100% owned, high-grade epizonal gold projects called the Lauriston
and Golden Mountain Projects, a large group of tenement applications called the Providence Project
and a large group of recently consolidated tenement applications called the Walhalla Belt Project, all
in the state of Victoria,
Australia
. The Fosterville South land package, assembled over a multi-year
period, notably includes a 600 sq. km property immediately to the south of and within the same
geological framework that hosts Kirkland Lake Gold's Fosterville tenements. Additionally, Fosterville
South recently acquired three gold-focused projects called the Moormbool, Timor and Avoca
Projects, which are also located in the state of Victoria,
Australia
.
Six of Fosterville South's properties (Lauriston, Providence,
Golden Mountain
, Timor, Avoca and
Walhalla Belt) have had historical gold production from hard rock sources despite limited modern
exploration and drilling.
On behalf of the Company
Bryan Slusarchuk
Chief Executive Officer and Director
Forward-Looking Statements
Information set forth in this news release contains forward-looking statements that are based on
assumptions as of the date of this news release. These statements reflect management's current
estimates, beliefs, intentions and expectations. They are not guarantees of future performance.
Fosterville South cautions that all forward-looking statements are inherently uncertain and that
actual performance may be affected by many material factors, many of which are beyond their
respective control. Such factors include, among other things: risks and uncertainties relating to
Fosterville South's limited operating history, its proposed exploration and development activities on
is Lauriston and Golden Mountain Properties and the need to comply with environmental and
governmental regulations. Accordingly, actual and future events, conditions and results may differ
materially from the estimates, beliefs, intentions and expectations expressed or implied in the
forward-looking information. Except as required under applicable securities legislation, Fosterville
South does not undertake to publicly update or revise forward-looking information.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined
in the policies of the Exchange) accepts responsibility for the adequacy or accuracy of this
release.
SOURCE
Fosterville South Exploration Ltd.
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For further information:
Adam Ross, Investor Relations, Direct : (604) 229-9445, Toll Free: 1(833)
923-3334, Email: [email protected]
CO: Fosterville South Exploration Ltd.
CNW 09:54e 21-JUL-20