Further to its news release dated Aug. 8, 2024, Esgold Corp. has closed a non-brokered private placement of 6,109,013 units at a price of 10 cents per unit for aggregate gross proceeds of $610,901.

“Management would like to thank all who participated in the private placement. This offering was oversubscribed by more than 20 percent as a direct result of large investments by existing shareholders and new strategic investors who recognized that Esgold is focused and on track to production in the near future,” explained Paul Mastantuono, chief executive officer and director of Esgold.

Each unit consisted of one common share in the capital of the company and one common share purchase warrant. Each warrant will entitle the holder to acquire one common Share at an exercise price of 15 cents for a period of 12 months from the closing date, subject to an acceleration clause in the event the trading price of the shares equals or exceeds 25 cents for a period of 15 consecutive days.

In connection with the financing, the company will pay a cash finder’s fee of $28,312 and issue 283,121 finders’ warrants. The finders’ warrants will be exercisable into common shares for a period of 12 months at an exercise price of 15 cents per common share.

All securities issued in connection with the offering are subject to a restricted hold period of four months and one day from the date of closing of the offering under applicable securities legislation.

The company intends to use the proceeds raised from the offering for general administrative company expenses and maintenance of the Montauban property, located in Quebec, Canada.

The subscribers in the offering included insider participation from Brad Kitchen (president and director) and Paul Mastantuono (chief executive officer and director). The insiders subscribed for an aggregate of one million units. The issuance of units to the insiders constitutes a related party transaction within the meaning of Multilateral Instrument 61-101 — Protection of Minority Security Holders in Special Transactions. The company is relying on the exemptions from the formal valuation and minority shareholder approval requirements, pursuant to subsections 5.5(a) and 5.7(1)(a) of MI 61-101, respectively, for the insider participation in the offering, as the value of the units subscribed for does not represent more than 25 per cent of the company’s market capitalization, as determined in accordance with MI 61-101.

About Esgold Corp.

Esgold is a Canadian environmentally aware resource exploration and processing company. Management has demonstrated expertise in advancing gold exploration projects into acquisition targets, most notably in the province of Quebec. Esgold’s principal restoration and recovery project is the Montauban property, situated in Quebec, just 80 kilometres west of Quebec City.

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