Gossan Resources Announces Closing of Private Placement of Units
Gossan Resources Announces Closing of
Private Placement of Units
Winnipeg, Manitoba--(Newsfile Corp. - May 13, 2022) -
Gossan Resources Limited
(TSXV: GSS)
(FSE: GSR) (XETRA: GSR) (the "
Company
" or "
Gossan
") is pleased to announce that, further to its
press releases of April 18, 2022 and May 4, 2022, the Company has closed a non-brokered private
placement through the issuance of 5,500,000 units (each, a "
Unit
") at a price of $0.16 per Unit for
aggregate gross proceeds of $880,000 (the "
Offering
"). Each Unit consists of one common share
(each, a "
Common Share
") in the capital of the Company and one-half of one Common Share
purchase warrant (each whole warrant, a "
Warrant
"). Each Warrant entitles the holder thereof to acquire
one Common Share at an exercise price of $0.24 per Common Share for a period of two (2) years from
the closing of the Offering.
All securities issued pursuant to the Offering are subject to a hold period of four months plus a day from
the date of issuance and the resale rules of applicable securities legislation. The proceeds from the
Offering will be used by the Company for corporate and general working capital purposes and to
advance its Gander Property. The closing of the Offering is subject to certain conditions including, but not
limited to, the receipt of all necessary regulatory and other approvals, including the approval of the TSX
Venture Exchange.
This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the
securities in the United States. 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 or to U.S. Persons unless registered under the U.S.
Securities Act and applicable state securities laws or an exemption from such registration is available.
Prior to the completion of the Offering, Douglas Reeson owns and controls 6,371,000 Common Shares
of the Company and 760,000 stock options of the Company, representing approximately 10.47% of the
Company's issued and outstanding Common Shares on a non-diluted basis and approximately 11.57%
of the Company's issued and outstanding Common Shares on a partially diluted basis, assuming the
exercise of all of the stock options held by Mr. Reeson. Upon closing of the Offering, Mr. Reeson's
percentage has decreased to approximately 9.60% of the Company's issued and outstanding Common
Shares on a non-diluted basis and approximately 10.62% of the Company's issued and outstanding
Common Shares on a partially diluted basis, assuming the exercise of all of the stock options held by Mr.
Reeson.
Mr. Reeson has a long-term view of his investment in the Company's securities and has no present
intention to acquire ownership of, or control over, additional securities of the Company.
Mr. Reeson may
choose to acquire additional securities of the Company. Depending on market and other conditions, Mr.
Reeson may increase or decrease his beneficial ownership, control or direction over additional
securities of the Company, through market transactions, private agreements, treasury issuances,
exercise of stock options or otherwise, depending on a number of factors, including but not limited to
general market and economic conditions, personal affairs and estate planning, and other available
investment opportunities. Mr. Reeson, who has been a principal officer and/or director of Gossan since
2001, does not have any current plans related to the enumerated list.
About Gossan Resources:
Gossan Resources Limited holds mineral exploration and development properties located in Manitoba,
Northwestern Ontario and Newfoundland. The Company's focus is to advance exploration and drilling of
its Glitter Property, located in the zinc-copper-silver rich polymetallic Sturgeon Lake Greenstone Belt of
Northwestern Ontario. The Company also holds a gold initiative with the Gander Gold Property in
Newfoundland as well as a broadly diversified portfolio of multi-element properties. These properties are
prospective for hosting gold, base metals and platinum group elements, as well as specialty "green-
battery metals", nickel, cobalt, vanadium, titanium, tantalum, lithium and chromium. Gossan also has a
deposit of high-purity, magnesium-rich dolomite, and holds advance and production royalty interests in a
high-purity silica sand deposit. The Company trades on the TSX Venture and the Frankfurt/Freiverkehr &
Xetra Exchanges and currently has 66,359,400 Common Shares outstanding.
For further information, please bookmark
www.gossan.ca
or contact:
Samuel Pelaez, President & CEO
Gossan Resources Limited
Tel:
(202) 677-8513
E-Mail:
Kathy Ringland, Office Manager
Tel: (204) 943-1990
Cautionary Statement on Forward-Looking Information
Neither the TSX Venture Exchange ("
TSXV
") nor its Regulation Services Provider (as that term is
defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.
No stock exchange, securities commission or other regulatory authority has approved or disapproved
the information contained herein. This news release contains forward-looking information which is not
comprised of historical facts. Forward-looking information involves risks, uncertainties and other factors
that could cause actual events, results, performance, prospects and opportunities to differ materially from
those expressed or implied by such forward-looking information. Forward looking information in this
news release includes, but is not limited to, uncertainty over the outcome of any litigious matters, the
Company's objectives, goals or future plans, statements regarding exploration results and exploration
plans. Factors that could cause actual results to differ materially from such forward-looking information
include, but are not limited to, capital and operating costs varying significantly from estimates, the
preliminary nature of metallurgical test results, delays in obtaining or failures to obtain required
governmental, environmental or other project approvals, uncertainties relating to the availability and costs
of financing needed in the future, changes in equity markets, inflation, fluctuations in commodity prices,
delays in the development of projects and the other risks involved in the mineral exploration and
development industry, and those risks set out in the Company's public documents filed on SEDAR.
Although the Company believes that the assumptions and factors used in preparing the forward-looking
information in this news release are reasonable, undue reliance should not be placed on such
information, which only applies as of the date of this news release, and no assurance can be given that
such events will occur in the disclosed time frames or at all. The Company disclaims any intention or
obligation to update or revise any forward-looking information, whether as a result of new information,
future events or otherwise, other than as required by law.
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FOR
DISSEMINATION IN THE UNITED STATES
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