Goldstorm Metals Announces Closing of Upsized Non-Brokered Private Placement for Approximately $1.95 Million
Goldstorm Metals Announces Closing of
Upsized Non-Brokered Private Placement for
Approximately $1.95 Million
Vancouver, British Columbia--(Newsfile Corp. - December 15, 2023) -
Goldstorm Metals Corp
.
(TSXV: GSTM) (FSE: B2U)
("
Goldstorm
" or the "
Company
") further to its news release dated
November 28, 2023, due to strong investor demand, the Company has upsized and closed its previously
announced non-brokered private placement (the "
Offering
") for gross proceeds of $1,950,080.08
through the issuance of (i)
461,556 non-flow-through units (the "
NFT Units
") sold at a price of $0.18 per
NFT Unit; and (ii)
9,335,000 flow-through units of the Company (each, a "
FT Unit
") sold at a price of
$0.20 per FT Unit.
Each NFT Unit consists of one common share of the Company (each, a "
NFT Share
") and one half (½)
of one common share purchase warrant (each whole warrant, a "
Warrant
"). Each FT Unit consists of
one common share of the Company issued as a "flow-through share" within the meaning of the Income
Tax Act (Canada), (each, a
"FT Share
") and one half (½) of one Warrant. Each Warrant entitles the
holder to purchase one non-flow-through common share of the Company at a price of $0.35 at any time
on or before that date which is 24 months after the date of issuance. A total of 4,898,278 Warrants were
issued under the Private Placement.
The gross proceeds received from the sale of the FT Units is expected to be used for work programs on
the Company's exploration properties and the net proceeds received from the sale of the NFT Units is
expected to be used for general working capital purposes.
In connection with the Offering, the Company issued 529,860 finder's warrants (the "
Finder's
Warrants
") and paid commissions of $105,852 to certain finders. Each Finder's Warrant entitles the
holder to purchase an additional common share of the Company at a price of $0.20 for a period of 24
months from the date of issuance.
The Offering remains subject to final acceptance from the TSX Venture Exchange. All securities issued
pursuant to the Offering are subject to a hold period expiring on April 16, 2024, in addition to such other
restrictions as may apply under applicable securities laws of jurisdictions outside Canada.
Certain insiders of the Company purchased an aggregate of 55,556 NFT Units under the Private
Placement, constituting, to that extent, a "related party transaction" as defined under Multilateral
Instrument 61-101 ("
MI 61-101
"). The Company has relied on the exemptions from the formal valuation
and minority shareholder approval requirements of MI 61-101, as neither the fair market value of the
securities distributed in the Private Placement nor the consideration received for those securities, in so
far as the Private Placement involves the directors and officers, exceeds 25% of the Company's market
capitalization.
About Goldstorm Metals
Goldstorm Metals Corp. is a precious and base metals exploration company with a large strategic land
position in the Golden Triangle of British Columbia, an area that hosts some of the largest and highest-
grade gold deposits in the world. Goldstorm's flagship projects Crown and Electrum cover an area that
totals approximately 16,469 hectares over 6 concessions, of which 5 are contiguous.
The Crown Project
is situated directly south of Seabridge Gold's KSM gold-copper deposits and Newcrest Gold's
Brucejack/Valley of the Kings gold mine.
Electrum, also located in the Golden Triangle of BC, is situated
directly between Newmont Corporation's Brucejack Mine, approximately 20 kilometers to the north, and
the past producing Silbak Premier mine, 20 kilometers to the south.
ON BEHALF OF THE BOARD OF DIRECTORS OF
GOLDSTORM METALS CORP.
"
Ken Konkin
"
Ken Konkin
President and Chief Executive Officer
For further information, please visit the Company's website at
https://goldstormmetals.com/
or
contact:
Chris Curran
Head of Corporate Development and Communications
Phone: (604) 559 8092
E-Mail:
or
Carsten Ringler
Head of Investor Relations and Communications
Phone:
+49 151 55362000
E-Mail:
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.
Cautionary Statement Regarding Forward-Looking Statements
This news release contains "forward-looking information" within the meaning of applicable Canadian
securities legislation. "Forward-looking information" includes, but is not limited to, statements with
respect to the activities, events or developments that the Company expects or anticipates will or may
occur in the future, including expectations regarding the Company's use of the proceeds from the sale
of the NFT Units and FT Units and expectations regarding the receipt of the necessary regulatory
approvals for the Offering. Generally, but not always, forward-looking information and statements can
be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled",
"estimates", "forecasts", "intends", "anticipates", 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", "might" or "will be taken", "occur" or "be achieved" or the negative connation thereof.
Such forward-looking information and statements are based on numerous assumptions, including
among others, that the Company will use the proceeds of the Offering as anticipated and that the
Company will receive regulatory approval with respect to the Offering. Although the assumptions
made by the Company in providing forward-looking information or making forward-looking statements
are considered reasonable by management at the time, there can be no assurance that such
assumptions will prove to be accurate.
There can be no assurance that such statements will prove to be accurate and actual results and
future events could differ materially from those anticipated in such statements. Important factors that
could cause actual results to differ materially from the Company's plans or expectations include the
risk that the Company will not use the proceeds of the Offering as anticipated, that the Company will
not receive regulatory approval with respect to the Offering, risks relating to the actual results of current
exploration activities, fluctuating metals prices, possibility of equipment breakdowns and delays,
exploration cost overruns, availability of capital and financing, general economic, market or business
conditions, regulatory changes, timeliness of government or regulatory approvals and other risks
detailed herein and from time to time in the filings made by the Company with securities regulators.
Although the Company has attempted to identify important factors that could cause actual results to
differ materially from those contained in the forward-looking information or implied by forward-looking
information, there may be other factors that cause results not to be as anticipated, estimated or
intended. There can be no assurance that forward-looking information and statements will prove to be
accurate, as actual results and future events could differ materially from those anticipated, estimated
or intended. Accordingly, readers should not place undue reliance on forward-looking statements or
information.
The Company expressly disclaims any intention or obligation to update or revise any forward-looking
statements whether as a result of new information, future events or otherwise except as otherwise
required by applicable securities legislation.
Not for distribution to U.S. news wire services or dissemination in the United States.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/191316