Calgary, Alberta--(Newsfile Corp. - June 8, 2022) - Cassiar Gold Corp. (TSXV: GLDC) (OTCQX: CGLCF) ("Cassiar Gold" or the "Company") is pleased to announce that, further to the Company's press releases on May 24, May 10, March 31, March 3 and March 2, 2022, it has closed its previously announced bought deal offering (the "Offering") of flow-through units of the Company ("FT Units"). Pursuant to the Offering, the Company issued 8,346,142 FT Units at a price of C$1.00 per FT Unit for gross proceeds of C$8,346,142 (including the partial exercise of the Underwriters' over-allotment option).
"We are extremely grateful to shareholders for their patience and support during this financing and are delighted to welcome excellent new institutional funds into the Cassiar Gold story such as US Global Investors and Myrmikan Capital, among others," stated Marco Roque, President and Chief Executive Officer of Cassiar Gold. "All proceeds from the Offering will be used to fund the 20,000 m drill campaign and exploration program that is fully underway at the Cassiar Gold Property and we are excited to announce results from this work in the coming months."
Each FT Unit consists of one common share of the Company to be issued as a "flow-through share" within the meaning of the Income Tax Act (Canada) (each, a "FT Share") and one half of one common share purchase warrant (each whole warrant, a "Warrant"). Each whole Warrant shall entitle the holder to purchase one non-flow-through common share of the Company (each, a "Warrant Share") at a price of C$1.05 at any time on or before that date which is 24 months following the date of issue, subject to adjustment in certain circumstances.
The Offering was completed by way of a short form prospectus. Red Cloud Securities Inc. and Raymond James Ltd. acted as co-lead underwriters and joint bookrunners for the Offering, on behalf of a syndicate of underwriters which included BMO Nesbitt Burns Inc. (collectively, the "Underwriters"). In connection with the Offering, the Underwriters were paid a cash commission of C$490,354.26, representing 6% of proceeds raised under the Offering (reduced to 3% for certain purchasers on a list provided in advance by the Company), and were issued 490,354 non-transferable broker warrants (the "Broker Warrants"). Each Broker Warrant is exercisable to acquire one common share of the Company (a "BW Share") at an exercise price of C$1.00 per BW Share for a period of 24 months from the date of issue.
Proceeds from the Offering will be used to incur "Canadian exploration expenses" as defined in subsection 66.1(6) of the Income Tax Act (Canada) (the "Tax Act") and "flow through mining expenditures" as defined in subsection 127(9) of the Tax Act. Such proceeds will be renounced to the subscribers with an effective date not later than December 31, 2022, in the aggregate amount of not less than the total amount of gross proceeds raised from the Offering. The Company intends to use the net proceeds raised from the Offering for the exploration of the Company's flagship Cassiar Gold property in British Columbia, Canada.
The securities have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from the registration requirements. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
About Cassiar Gold Corp.
Cassiar Gold Corp. is a Canadian gold exploration company holding a 100% interest in its flagship Cassiar Gold Property located in British Columbia, Canada. The Cassiar Gold property spans 590 km2 and consists of two main project areas: Cassiar North, which hosts a NI 43-101-compliant inferred resource estimate of 1.4Moz at 1.14 g/t Au (cutoff grade of 0.5 g/t) known as the as the Taurus Deposit (see National Instrument 43-101 Technical report on the Cassiar Gold property, April 28, 2012, by S. Zelligan, J. Moors, C. Jolette, posted to SEDAR); and Cassiar South which hosts numerous gold showings, historical workings, and exploration prospects. Historical underground mines in the Cassiar South area have yielded over 315,000 oz of Au at average head grades of between 10 and 20 g/t Au (BC Minfile), underscoring the high potential for further discovery and expansion of bonanza-grade orogenic gold veins.
The Company also holds a 100% interest in the Sheep Creek gold camp located near Salmo, BC. The Sheep Creek gold district ranks as the third largest past-producing orogenic gold district in BC with historical gold production of 742,000 ounces gold at an average grade of 14.7 g/t gold from 1900 to 1951. Minimal exploration work has been conducted since the 1950s.
Cassiar Gold acknowledges, respects, and supports the rights of Traditional First Nations in the lands and communities where we operate.
Cassiar Gold Corp.
VP Investor Relations & Communications
This press release may contain forward-looking statements including those describing Cassiar's future plans and the expectations of management that a stated result or condition will occur. Any statement addressing future events or conditions necessarily involves inherent risk and uncertainty. Actual results can differ materially from those anticipated by management at the time of writing due to many factors, the majority of which are beyond the control of Cassiar and its management. In particular, this news release contains forward-looking statements pertaining, directly or indirectly, to the following: the use of proceeds of the Offering and ability to renounce the flow through expenditures.
Although Cassiar believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties, actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, risks associated with the exploration and development industry in general (e.g., operational risks in development, exploration and production; the uncertainty of mineral resource estimates; the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety and environmental risks), constraint in the availability of services, commodity price and exchange rate fluctuations, the current COVID-19 pandemic, changes in legislation impacting the mining industry, adverse weather conditions and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures. These and other risks are set out in more detail in the Company's Annual Information Form for the year ended September 30, 2021.
Readers are cautioned that the foregoing list of risk factors should not be construed as exhaustive. These statements speak only as of the date of this release or as of the date specified in the documents accompanying this release, as the case may be. The Company undertakes no obligation to publicly update or revise any forward-looking statements except as expressly required by applicable securities laws.
Neither the 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.
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