Precious Metals

Not for distribution to U.S. newswire services or for dissemination to the United States

Gold Mountain Mining Corp. ("Gold Mountain" or the "Company") (TSXV:GMTN)(Frankfurt:5XFA) is pleased to announce that it has entered into an engagement letter with Canaccord Genuity Corp. and Gravitas Securities Inc. (collectively the "Agents") in connection with a private placement of up to 5,155,000 units of the Company (the "Units") at a price of $0.97 per Unit (the "Issue Price") for gross proceeds to the Company of $5,000,350 (the "Offering"). Each Unit consists of one common share of Gold Mountain ("Common Shares") and one-half of one Common Share purchase warrant (each whole warrant, a "Warrant"). Each Warrant will be exercisable to acquire one Common Share at a price of $1.25 for 36 months from the closing date of the Offering


Pursuant to the agreement, Gold Mountain has granted the Agents an option to offer for sale an additional 3,100,00 Units at the Issue Price for additional gross proceeds of up to $3,007,000.

In addition, the Company has received an institutional lead order from Crescat Capital LLC ("Crescat"). A Participation Right (the "Right") granted by Gold Mountain will provide Crescat the Right to purchase in future offerings of equity securities, or debt securities convertible into equity securities of the Company, the number of such securities necessary to enable the Subscriber to maintain the aggregate ownership percentage of the issued and outstanding common shares of the Company immediately prior to the closing of such future offering.

The Company intends to use the proceeds from the Offering to advance the Elk Gold Project as well as for working capital and general corporate purposes.

The Offering is scheduled to close on or about February 23, 2021 and is subject to regulatory approval. Resale of the securities distributed in connection with the Offering will be subject to a hold period of four months and one day following the closing date of the Offering.

The Warrants shall be callable by the Company should the daily volume-weighted average trading price of the common shares of the Company on the TSX Venture Exchange exceed C$2.25 for a period of 10 consecutive trading days, at any time during the term of the Warrants ("Call Trigger"). Following a Call Trigger, the Company may give notice in writing ("Call Notice") to the holders of Warrants that any Warrant that remains unexercised by the holder thereof shall expire 30 days following the date on which the Call Notice is given.

It is anticipated that certain directors, officers and other insiders of the Company will acquire Units under the Offering. Such participation will be considered to be "related party transactions" within the meaning of TSX Venture Exchange Policy 5.9 and Multilateral Instrument 61-101- Protection of Minority Security Holders in Special Transactions ("MI 61-101") adopted in the Policy. The Company intends to rely on the exemptions from the formal valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5 (a) and 5.7(1)(a) of MI 61-101 in respect of related party participation in the Offering as neither the fair market value (as determined under MI 61-101) of the subject matter of, nor the fair market value of the consideration for, the transaction, insofar as it involves interested parties, is expected to exceed 25% of the Company's market capitalization (as determined under MI 61-101).

NO U.S. REGISTRATION

The securities referred to in this news release 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 applicable securities laws of any state of the United States, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons (as such term is defined in Regulation S under the U.S. Securities Act) or persons in the United States unless registered under the U.S. Securities Act and any other applicable securities laws of the United States or an exemption from such registration requirements is available. This news release does not constitute an offer to sell or a solicitation of an offer to buy any of these securities within any jurisdiction, including the United States.

ABOUT Gold Mountain Mining Corp.

Gold Mountain is a BC-based gold and silver exploration and development company focused on resource expansion at the Elk Gold Project, a past-producing mine located 57 km from Merritt in South Central British Columbia.

For further information, please contact:

Gold Mountain Mining Corp.
Kevin Smith, Director and Chief Executive Officer
Phone: 604-309-6340
Email: KS@gold-mountain.ca
Website: www.gold-mountain.ca

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.

Cautionary Statements Regarding Forward Looking Information

This news release includes certain "forward-looking statements" under applicable Canadian securities legislation. Forward- looking statements include, but are not limited to, statements with respect to: the ability of the Company and the agent to close the Offering, Closing Date, Use of Proceeds, and TSXV approval. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: general business, economic, competitive, political and social uncertainties; delay or failure to receive board, shareholder or regulatory approvals; the price of gold; and the results of current exploration. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Gold Mountain disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. For a comprehensive overview of all risks that may impact the Company, please see the Filing Statement filed on Gold Mountain's SEDAR profile on December 15, 2020.

SOURCE:Gold Mountain Mining Corp



View source version on accesswire.com:
https://www.accesswire.com/626980/Gold-Mountain-Announces-50-Million-Brokered-Private-Placement

News Provided by ACCESSWIRE via QuoteMedia

american money with gold bars

Top Stories This Week: Gold Takes Post-Rate Hike Tumble, Powell Projects Pain

Top Stories This Week: Gold Weathers Latest Rate Hike, Powell Projects Painyoutu.be

Gold remained near lows not seen in over two years ahead of this week's US Federal Reserve meeting.

Trading as high as US$1,686 per ounce ahead of the event, which ran from Tuesday (September 20) to Wednesday (September 21), gold sank as low as US$1,658 in the immediate aftermath before rebounding to the US$1,670 level.

Friday (September 23) brought an end to the yellow metal's fairly steady showing, with gold falling to about US$1,640.

Keep reading...Show less

Glencore to Acquire Newmont's 18.75% Shareholding in the Mara Project

Today Glencore International AG ("Glencore") announced, and has made Yamana Gold Inc. (TSX:YRI; NYSE:AUY; LSE:AUY) ("Yamana" or the "Company") aware under the terms of the MARA joint venture ("MARA JV"), that it has reached an agreement (the "Agreement") to acquire Newmont Corporation's ("Newmont") 18.75% shareholding in the MARA Project ("MARA" or the "Project"). Following completion of the Agreement, Yamana remains the MARA JV operator with a 56.25% interest in MARA, with Glencore owning the remaining 43.75%. Yamana welcomes Glencore's increased stake in the Project and believes the Agreement is a positive step for MARA, as the consolidation of ownership amongst partners provides a further endorsement of the quality and strategic optionality inherent in the Project, as well as underpinning its value.

News Provided by GlobeNewswire via QuoteMedia

Keep reading...Show less

Glencore to Acquire Newmont's Stake In MARA Project

Today, Glencore International AG (GIAG) and Newmont Corporation (NYSE: NEM, TSX: NGT) announced they have reached an agreement in which Glencore will acquire Newmont's 18.75% shareholding in the MARA Project (MARA). Following completion of the transaction, Glencore will own 43.75% of MARA.

Under the terms of the agreement, Glencore will pay $124.9 million upon closing and a $30 million deferred payment upon commercial production subject to an annual interest charge of 6%. Total deferred consideration is capped at $50 million.

News Provided by Business Wire via QuoteMedia

Keep reading...Show less
map zoomed in on Ecuador

Gold Mining in Ecuador

With a strong minerals market, favourable government regulations, rich deposits and a strong industry presence, Ecuador is an incredibly attractive investment opportunity for Australian companies.

According to The Fraser Institute's 2021 annual survey of mining and exploration companies, Ecuador is the second most attractive destination in Latin America for mining investment. It's also notable for hosting some of the most attractive gold, silver and copper deposits in the region, many of which remain underexplored. The country's government, meanwhile, has been open about its plan to support mining industry growth.

Thus far, that plan has largely succeeded, with Ecuador's mining exports increasing by 74 percent in 2021. With investments by several powerhouse mining companies and increasing demand for the country's major mineral exports, the coming years will likely see similar growth. Moreover, because Australia is already a major investor in Ecuador, the two countries have existing multiple bilateral agreements in place.

Keep reading...Show less

Investment in Future Secures NGM's Status as Industry Leader

Nevada Gold Mines (NGM) continues to demonstrate the impact of Barrick Gold Corporation's (NYSE:GOLD)(TSX:ABX) strategy of combining the best assets with the best people as new projects and prospects secure its future as a high-quality, long-life operation for decades to come, says NGM chairman Mark Bristow.

Speaking during a visit by a group of equity analysts and investors to see first-hand the development of the Goldrush underground project, the open pit operations and processing facilities at Cortez, and the Third Shaft project and core shack at Turquoise Ridge, Bristow said NGM had unlocked significant synergies by consolidating mines, teams, processing facilities and landholdings.

News Provided by GlobeNewswire via QuoteMedia

Keep reading...Show less
Halcones Precious Metals Corp. Announces Listing on the TSX Venture Exchange

Halcones Precious Metals Corp. Announces Listing on the TSX Venture Exchange

Halcones Precious Metals Corp. ( TSXV: HPM) ("Halcones" or the "Company") is pleased to announce that the Company's common shares have been listed and admitted to trade on the TSX Venture Exchange (the "TSXV"), with trading to commence as of the opening of market today under the symbol "HPM". The Company completed its qualifying transaction with Halcones Precious Metals Inc., as previously announced in its press release dated September 20, 2022, and further details can be found in the Company's filing statement (the "Filing Statement") dated September 13, 2022. The Filing Statement is available under the Company's profile on SEDAR at www.sedar.com.

Keep reading...Show less

Latest Press Releases

Related News

×