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Edgemont Gold Corp. (CSE: EDGM) (FSE: EG8) has agreed to a non-brokered private placement of 2,000,000 flow through units at a price of $0.335 per unit for gross proceeds of $670,000. Each unit will be comprised of one flow-through common share and one half of a common share purchase warrant, with each full warrant entitling the holder to purchase an additional non-flow-through common share at an exercise price of $0.35 per share for a period of one year from the date of closing.
The proceeds of this private placement will be used to extend the drill program scheduled this summer at Edgemont's Dungate copper/gold porphyry project near Houston, B.C.
Common shares comprising part of the Units issued under this private placement will qualify as flow through shares under the Income Tax Act (Canada). The total funds received by the Company will be used to incur 'Canadian exploration expenses' that will qualify as 'flow through mining expenditures' under the Income Tax Act and will be renounced to the initial purchasers of the flow through shares.
All securities to be issued with respect to this private placement will be subject to a hold period expiring four months and one day from the closing date of the placement, in accordance with applicable securities laws. A total of 160,000 finders warrants will be paid with respect to this placement. Closing of the private placement is subject to final acceptance by the Canadian Securities Exchange.
About Edgemont
Edgemont is actively exploring the Dungate copper/gold porphyry project located just 6 km south of Houston in the Omenica Mining Division of northern British Columbia. Having acquired an interest in its initial claims at Dungate in 2018, the Company now holds five mineral tenures covering 1,582.2 hectares that can be explored year round by all-season roads. For more information, please visit our web site at www.edgemontgold.com.
For further information, please contact:
Stuart Rogers
Chief Executive Officer
Tel: (778) 239-3775
www.edgemontgold.com
Kevin Arias
VP Corporate Development
Tel: (778) 773-4786
E-mail: info@edgemontgold.com
Neither the Canadian Securities Exchange nor its Market Regulator (as the term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/86266
Figure 1: Long Section of the Never Never Gold Deposit and the Pepper, Four Pillars and West Winds Gold Prospects looking east. Proposed exploration drill drive design in black.