Plato Gold Announces 2nd and Final Closing of Convertible Debenture totaling $50,000
For Immediate Release
Plato Gold Announces 2nd and Final Closing of
Convertible Debenture totaling $50,000
Toronto, June 22, 2017 – Plato Gold Corp. (TSX-V: PGC) (“Plato” or the “ Company”), an
exploration company with a portfolio of properties in Northern Ontario and Santa Cruz,
Argentina is pleased to announce that it has closed the second and final tranche of its non -
brokered private placement of convertible debentures (the “ Offering”) previously announced on
June 1, 2017. Pursuant to the Offering, for the second and final closing, the Company issued
convertible debentures for gross proceeds totaling $50,000.
The convertible debentures carry interest at the rate of 10% per annum, pay able annually. The
maturity date of the convertible debentures is 36 months following the date of issue of the
debentures. The convertible d ebentures are unsecured. The convertible d ebentures are
convertible at the holder's option at exercise price of $0.05 per common share in the first 12
months and $0.10 per common share thereafter until maturity. The Company may redeem all or
any portion of the convertible debentures at any time prior to or on the maturity date.
The proceeds from the sale of the convertible debentures will be used by the Company for
exploration work on the Good Hope Niobium Project near Marathon Ontario and for general
working capital purposes.
Anthony Cohen, an insider of the Company and a Con trol Person, is purchasing $50,000 of the
convertible d ebentures being offered pursuant to the Offering. Mr. Cohen is considered a
“related party” within the meaning of Multilateral Instrument 61 -101 Protection of Minority
Security Holders in Special Trans actions (“MI 61 -101”) and h is participation in the Offering
therefore constitutes a “related party transaction” within the meaning of MI 61 -101. This
transaction, however, is exempt from the formal valuation and minority shareholder approval
requirements set out in, respectively, sections 5.4 and 5.6 of MI 61 -101, as, at the time of such
transaction, neither the fair market value of the securities issued to, nor the fair market value of
the consideration paid by , Anthony Cohen, exceeds 25% of the Company’s market
capitalization.
The Company did not file a material change report more than 21 days prior to the expected
closing of the Offering as the details of the participation therein by related parties of the
Company were not settled until shortly prior to the final closing of the Offering.
The aggregate funds raised for the Offering announced on June 1, 2017 totals $ 300,000, which
includes $250,000 announced in the first closing on June 15, 2017 and the $ 50,000 in the second
closing announced in this rele ase. Closing of the offering is subject to receipt of all required
regulatory approvals, including final approval of the TSX Venture Exchange.
Upon completion of the Offering , there will be 154,091,655 common shares of the Company
issued and outstanding if conversion of all the convertible debentures occurs in the first year and
151,091,655 common shares of the Company issued and outstanding if conversion occurs after
the first year.
The convertible debentures and the underlying securities, as applica ble, will be subject to a
statutory hold period of four months and one day from the date of issuance, in accordance with
applicable securities legislation.
About Plato Gold Corp.
Plato Gold Corp. is a Canadian exploration company listed on the TSX Ve nture Exchange with
projects in Marathon Ontario, Timmins Ontario and Santa Cruz, Argentina.
The Good Hope Niobium Project consists of a total of 19 claims, 263 claim units and 4208
hectares in Killala Lake Area and Cairngorm Lake Area Townships, near Mar athon Ontario. In
May 2017, Plato signed an option agreement with Rudy Wahl and co -owners to acquire 100%
interest in the Good Hope Property. A drill program is planned for 2017.
The Timmins Ontario project includes 4 properties: Guibord, Harker, Hollow ay and Marriott in
the Harker/ Holloway gold camp located east of Timmins, Ontario. In November 2010, Plato
signed an agreement granting St Andrew Goldfields Ltd. the option to earn a 75% interest in the
above properties. On January 26, 2016, St. Andrew G oldfields was acquired by Kirkland Lake
Gold Inc.. The Holloway and Marriott options are now held by Kirkland Lake Gold Inc..
In July 2012, Plato sold a 50% interest in the Guibord property to Victory Gold Mines Inc. who
amalgamated with Northern Gold Mining Inc. on February 6, 2013. On December 22, 2015,
Oban Mining Corporation completed the acquisition of Northern Gold Mining . In June 2016,
Oban changed its name to Osisko Mining Inc. (“Osisko”). Osisko now holds the 50% interest in
the Guibord property.
In February 2013, Plato sold an 80% interest in the Harker property to Northern Gold Mining
Inc. and was subsequently acquired by Oban Mining Corporation on December 22, 2015. In
June 2016, Oban changed its name to Osisko Mining Inc.. Osisko now holds the 80% interest in
the Harker property.
In Argentina, Plato owns a 75% interest in Winnipeg Minerals S.A. (“WMSA”), an Argentina
incorporated company. T he Lolita Property , hel d by WMSA, is comprised of a number of
contiguous mineral rights totaling 9,672 hectares . Work has advanced on this exploration
property to the point that it is drill-ready or ready to be optioned to a partner.
For additional company information, please visit: www.platogold.com.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION PROVIDER (AS THAT
TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS
RESPONSIBILITY FOR THE ADEQUACY OF THIS RELEASE.
For further information, please contact:
Anthony Cohen
President and CEO
Plato Gold Corp.
T: 416-968-0608
F: 416-968-3339
www.platogold.com
Forward Looking Statements
This news release contains “forward -looking statements”, within the meaning of applicable securities laws. These statements include, but are not
limited to, statements regarding the,potential mineralization and resources, exploration re sults, and future plans and objectives . Generally, these
forward-looking statements can be identified by the use of forward -looking terminology such as “plans”, “expects” or “does not expect”, “is
expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, 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”. Forward -looking state ments are based on the opinions and estimates of management as of the date such statements are made, and
they are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, use of procee ds, level of activity,
performance or achievements of Plato to be materially different from those expressed or implied by such forward -looking statements, including
but not limited to risks related to: risks related to exploration; actual resource viability, and other risks of the mining industry . Although
management of Plato has attempted to identify important factors that could cause actual results to differ materially from tho se contained in
forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no
assurance that such statements will prove to be accurate, as actual results and future events could differ materially from th ose anticipated in such
statements. Accordingly, readers should not place un due reliance on forward -looking statements. The Company does not undertake to update
any forward -looking statements that are incorporated by reference herein, whether as a result of new information, future events or otherw ise,
except in accordance with applicable securities laws.