Moneta Gold Announces Upsize to Previously
Moneta Gold Announces Upsize to Previously
Announced Bought Deal Financing
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Symbol: TSX: ME
TORONTO
,
July 29, 2022
/CNW/ -
Moneta Gold Inc.
(TSX:ME) (OTCQX:MEAUF) (XETRA:MOP)
("Moneta Gold" or the "Company") is pleased to announce that it has entered into an amended
agreement with Stifel GMP ( the "
Lead Underwriter
") to increase the size of the previously
announced offering (the "
Offering
"). Pursuant to the amended terms of the Offering, the Lead
Underwriter has agreed to purchase, on a bought deal basis, 5,000,000 common shares of the
Company that qualify as "flow through shares" (within the meaning of subsection 66(15) of the
Income Tax Act (
Canada
)) (the "
Flow Through Shares
") at a price of
C$2.40
per Flow Through
Share and 608,000 common shares (the "
Hard Dollar Shares"
) at a price of
C$1.645
per Hard
Dollar Share for aggregate gross proceeds of
C$13,000,160
. In addition, the Company has granted
the Underwriters an option to purchase 1,000,000 additional Flow Through Shares on the terms
described above for additional aggregate gross proceeds of up to approximately
C$2,400,000
,
exercisable up to 48 hours prior to the closing of the Offering.
The gross proceeds from the sale of the Flow Through Shares will be used to incur eligible
"Canadian exploration expenses" that will qualify as "flow-through mining expenditures", as both
terms are defined in the
Income Tax Act
(
Canada
) (the
"Qualifying Expenditures"
) related to the
Company's Tower Gold project in
Ontario
on or before
December 31
, 2023. The Qualifying
Expenditures shall be renounced to the purchasers of the Flow Through Shares effective on or
before
December 31
, 2022. The net proceeds of the sale of the Hard Dollar Shares shall be used
for general corporate purposes.
The Offering is scheduled to close on or about
August 18, 2022
and is subject to certain conditions
including, but not limited to, the receipt of all necessary regulatory and other approvals including the
approval of the Toronto Stock Exchange.
This press release does not constitute an offer to sell or a solicitation of an offer to buy 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 or for the account or benefit of a
U.S. person (as defined in Regulation S under the U.S. Securities Act) unless registered under the
U.S. Securities Act and applicable state securities laws or an exemption from such registration is
available.
About
Moneta Gold
Moneta is a Canadian-based gold exploration company focussed on advancing its 100% wholly
owned Tower Gold project, which currently hosts a gold mineral resource estimate of 4.3 Moz
indicated and 7.5 Moz inferred. The Corporation's 2022 drill program is primarily designed to infill
and upgrade the resource categories of the mineral resources. An updated PEA study
encompassing the entire Tower Gold project is planned to be completed in the third quarter of 2022.
Moneta is committed to creating shareholder value through the strategic allocation of capital and a
focus on the current resource upgrade drilling program, while conducting all business activities in an
environmentally and socially responsible manner.
The Company's public documents may be accessed at
www.sedar.com
. For further information on
the Company, please visit our website at
www.monetagold.com
or email us at
.
This news release includes certain forward-looking information and forward-looking statements,
collectively "forward-looking statements" within the meaning of applicable securities legislation.
Forward-looking statements are frequently identified by such words as "may", "will", "plan",
"expect", "anticipate", "estimate", "intend" and similar words referring to future events and results.
Forward-looking statements include but are not limited to information with respect to the closing of
the Offering, the use of proceeds, the timing of the renunciation and tax treatment of the Flow
Through Shares as well as future performance of the business, its operations and financial
performance and condition such as the Corporation's drilling program . Forward-looking
statements are subject to inherent risks and uncertainties including without limitation the impact of
COVID-19 related disruptions in relation to the Corporation's business operations including upon its
employees, suppliers, facilities and other stakeholders; uncertainties and risk that have arisen and
may arise in relation to travel, and other financial market and social impacts from COVID-19 and
responses to COVID 19 and the ability of the Corporation to finance and carry out its anticipated
goals and objectives. International conflicts and other geopolitical risks, including war, military
action, terrorism, trade and financial sanctions, which have historically led to, and may in the
future lead to, uncertainty or volatility in global commodity and financial markets and supply
chains; the impact of
Russia's
invasion of
Ukraine
and the widespread international condemnation
has had a significant destabilizing effect on world commodity prices, supply chains, inflation risk,
and global economies more broadly, may adversely affect the Corporation's business, financial
condition, and results of operations.
Forward-looking statements are based on the current opinions and expectations of management.
All forward-looking information is inherently uncertain and subject to a variety of assumptions,
risks and uncertainties, including the speculative nature of mineral exploration and development,
fluctuating commodity prices, competitive risks and the availability of financing, as described in
more detail in our recent securities filings available at
www.sedar.com
. Actual events or results
may differ materially from those projected in the forward looking-statements and we caution
against placing undue reliance thereon. We assume no obligation to revise or update these
forward-looking statements.
SOURCE
Moneta Gold Inc.
View original content:
http://www.newswire.ca/en/releases/archive/July2022/29/c8125.html
%SEDAR: 00003301E
For further information:
Gary V. O'Connor, CEO, 416-357-3319; Linda Armstrong, Investor
Relations, 647-456-9223
CO: Moneta Gold Inc.
CNW 12:44e 29-JUL-22