StrikePoint Gold Inc. Announces up to CAD $3 Million Private Placement and Concurrent 10 for 1 Share Consolidation
StrikePoint Gold Inc. Announces up to CAD $3
Million Private Placement and Concurrent 10
for 1 Share Consolidation
Vancouver, British Columbia--(Newsfile Corp. - October 1, 2024) - StrikePoint Gold Inc. (TSXV: SKP)
(OTCQB: STKXF) ("StrikePoint" or the "Company") is pleased to announce a non-brokered private
placement (the "Private Placement") for gross proceeds of up to CAD $3 million.
The Private Placement
will be carried out following the completion of the intended consolidation (the "Consolidation") of the
Company's issued and outstanding common shares prior to the closing of the Private Placement on the
basis of ten (10) existing common shares for one (1) post-consolidation common share (each a "Post-
Consolidation Common Share").
Private Placement
The Private Placement will consist of up to 15,000,000 units (the "Units") of the Company at a post-
Consolidation price of CAD $0.20 per Unit.
Each Unit shall be comprised of one Post-Consolidation
Common Share (a "Common Share") and one Post-Consolidation Common Share purchase warrant (a
"Warrant"), with each Warrant exercisable into one Post-Consolidation Common Share at an exercise
price of CAD $0.30 for a period of twenty-four (24) months from closing.
The Warrants will be subject to
an acceleration clause stipulating that should the Post-Consolidation Shares close at, or above, $0.40
for ten consecutive trading days, they will be called for exercise withing 30 days of the Company
providing notice by way of regular news release or will expire.
Finder's fees and commissions may be paid in accordance with the policies of the TSX Venture
Exchange.
Pursuant to applicable Canadian securities laws, all securities issued under the Private
Placement are subject to a hold period of four months and one day. Closing remains subject to several
prescribed conditions, including, without limitation, approval of the TSX Venture Exchange.
The Company intends to use the proceeds from the Private Placement for exploration activities at its two
Nevada-based projects, the Cuprite Gold Project and the newly-acquired Hercules Gold Project and for
general working capital purposes.
The Company anticipates that insiders will subscribe for Units. The issuance of Units to insiders is
considered a related party transaction subject to Multilateral Instrument 61-101 -
Protection of Minority
Security Holders in Special Transactions
. The Company intends to rely on exemptions from the formal
valuation and minority shareholder approval requirements provided under sections 5.5(a) and 5.7(a) of
Multilateral Instrument 61-101 on the basis that the participation in the Private Placement by the insiders
will not exceed 25 per cent of the fair market value of the Company's market capitalization. A material
change report in connection with the Private Placement will be filed less than 21 days before the closing
of the Private Placement. This shorter period is reasonable and necessary in the circumstances as the
Company wishes to complete the Private Placement in a timely manner.
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.
Share Consolidation
StrikePoint Gold is also announcing, concurrent with the above noted Private Placement, a 10-for-1
stock consolidation applicable to all issued and outstanding common shares, warrants and options.
The
Consolidation remains subject to TSX Venture Exchange approval.
Within three trading days of obtaining the acceptance of the TSX Venture Exchange, the Company is
expected to begin trading on the TSX Venture Exchange on a post-consolidated basis under the stock
symbol "SKP" and the Company will be obtaining a new CUSIP and ISIN number for its common shares
in connection with the proposed Consolidation.
Michael G. Allen, President & CEO of StrikePoint commented: "This decision will better position the
Company to develop its existing assets and evaluate other investment opportunities that the Company
continues to review.
This reverse stock split is a necessary step to move the Company to a significantly
better position to succeed and finance its multi-asset gold exploration projects in Nevada."
As of October 1, 2024, StrikePoint has 263,894,207 shares, 24,344,500 options, and 26,873,250
warrants issued and outstanding, representing a fully diluted share capital of 315,111,957. After the
Consolidation there will be approximately 26,389,420 common shares issued and outstanding (subject
to any differences due to rounding), prior to the completion of the above noted Private Placement. The
Company will not be issuing fractional Post-Consolidation Common Shares to shareholders in
connection with the Consolidation. Where the Consolidation would otherwise result in a shareholder
being entitled to a fractional common share, the number of post-Consolidation common shares issued to
such holder of common shares shall be rounded up to the next greater whole number of common shares
if the fractional entitlement is equal to or greater than 0.5 and shall be rounded down to the next lesser
whole number of common shares if the fractional entitlement is less than 0.5. In calculating such fractional
interests, all common shares held by a beneficial holder shall be aggregated. The exercise or conversion
price and the number of common shares issuable under any of the Company's outstanding stock options
and warrants will be proportionately adjusted to reflect the Consolidation in accordance with the
respective terms thereof.
Computershare Investor Services Inc., the Company's transfer agent, will act as exchange agent for the
Consolidation. Registered shareholders of the Company will receive a letter of transmittal from the
exchange agent in respect of the Consolidation and each registered shareholder will be required to
complete and sign it. The letter of transmittal will contain instructions on how to surrender the certificates
representing the registered shareholder's common shares. If a registered shareholder does not receive
a letter of transmittal in respect of its common shares, sample letters of transmittal will be available on
SEDAR+.
Non-registered shareholders (i.e. beneficial shareholders) who hold their common shares through an
intermediary (i.e. a securities dealer, bank or financial institution) should note that the intermediary may
have different procedures for processing the Consolidation from those that will be put in place by the
Company for registered shareholders. Shareholders who hold their common shares through an
intermediary who have questions in this regard should contact their intermediary for more information.
About StrikePoint
StrikePoint is a multi-asset gold exploration company focused on building precious metals resources in
the Western United States and in Canada.
Both the Cuprite Gold Project and the Hercules Gold Project are located in Nevada's Walker Lane Gold
Trend where StrikePoint is rapidly becoming one of the largest holders of mineral claims with
approximately 145 square kilometers of prospective geology under claim.
The Walker Lane hosts AngloGold Ashanti's multi-million once Silicon Gold and Merlin discoveries and
Kinross's Tier - 1 Round Mountain Mine.
In addition, the Company controls two advanced-stage exploration assets in British Columbia's Golden
Triangle: the past-producing high-grade silver Porter-Idaho Project and the high-grade gold Willoughby
Project.
ON BEHALF OF THE BOARD OF DIRECTORS OF STRIKEPOINT GOLD INC.
"Michael G. Allen"
Michael G. Allen
President, Chief Executive Officer & Director
For more information, please contact:
StrikePoint Gold Inc.
Knox Henderson, Investor Relations
T: (604) 551-2360
E:
W:
www.strikepointgold.com
Cautionary Statement on Forward-Looking Information
Certain statements made and information contained herein may constitute "forward-looking
information" and "forward-looking statements" within the meaning of applicable Canadian and United
States securities legislation. These statements and information are based on facts currently available
to the Company and there is no assurance that actual results will meet management's expectations.
Forward-looking statements and information may be identified by such terms as "anticipates",
"believes", "targets", "estimates", "plans", "expects", "may", "will", "speculates", "could" or "would".
These forward-looking statements or information relate to, among other things: the completion of the
Private Placement and the Consolidation; the intended use of proceeds from the Private Placement;
and the receipt of all necessary approvals for the completion of the Private Placement and the
Consolidation, including the approval of the TSX Venture Exchange.
Such forward-looking information and statements are based on numerous assumptions, including
among others, that the Company will complete the Private Placement and the Consolidation on the
terms as anticipated by management, and that the Company will receive all necessary approvals for
the completion of the Private Placement and the Consolidation, including the approval of the TSX
Venture Exchange. 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 and actual results
and future events could differ materially from those anticipated in such statements.
All of the forward-looking statements made in this document are qualified by these cautionary
statements. Important factors that could cause actual results to differ materially from the Company's
plans or expectations include risks relating to the failure to complete the Private Placement or the
Consolidation in the timeframe and on the terms as anticipated by management, market conditions,
metal prices, and risks relating to the Company not receiving all necessary approvals for the
completion of the Private Placement or the Consolidation, including the approval of the TSX Venture
Exchange. Although the Company has attempted to identify important factors that could cause actual
results to differ materially from those contained in forward-looking information, there may be other
factors that cause results not to be as anticipated, estimated, forecast or intended and readers are
cautioned that the foregoing list is not exhaustive of all factors and assumptions which may have been
used. Should one or more of these risks and uncertainties materialize, or should underlying
assumptions prove incorrect, actual results may vary materially from those described in forward-
looking information. Accordingly, there can be no assurance that forward-looking information will
prove to be accurate and forward-looking information is not a guarantee of future performance.
Readers are advised not to place undue reliance on forward-looking information. The forward-looking
information contained herein speaks only as of the date of this document. The Company disclaims
any intention or obligation to update or revise forward-looking information or to explain any material
difference between such and subsequent actual events, except as required by applicable law.
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.
Not for Distribution to US Newswire Services or Dissemination in the Unites States of America
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