February 4, 2023


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NOT FOR DISTRIBUTION TO US NEWSWIRE SERVICES OR FOR PUBLICATION, PUBLICATION, DISTRIBUTION OR DISSEMINATION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES

TORONTO, ON / ACCESSWIRE / December 2, 2022 / Avidian Gold Corp. (“avidians” or the “company“) (TSXV:AVG) is pleased to announce that it has completed the first tranche (the “First installment“) of its non-brokered private placement offering of shares in the Company (the “units“) for gross receipts of up to $500,000 (the “offer‘) previously announced on October 17, 2022 and November 25, 2022. A total of 5,378,715 units were sold under the first tranche at a price of C$0.035 per unit (the “issue price‘), for total gross proceeds of $188,258.

Each Unit consists of one common share of the Company (a “common share“) and a warrant to purchase one common share (a “warranty“). Each Warrant will entitle the holder to purchase one common share at an exercise price of $0.06 per common share (a “option stock“) for a period of twenty-four (24) months after the closing of the first tranche. The second tranche of the Offering (the “Second installment“) is expected to close on or before December 15, 2022.

It is expected that approximately 68% of the net proceeds from the first tranche of the Offering will be used to pay state claim fees on the Company’s mineral properties in Alaska and Nevada, 11% of the net proceeds from the first tranche of the Offering will be used for exploration and development of Avidian’s advanced stage gold and gold-copper mineral properties in Alaska and Nevada and the remaining 21% for general and administrative expenses. The expected use of all of the net proceeds of the Offering will be disclosed in the press release announcing the closing of the second tranche of the Offering. It is not expected that any of the net proceeds from the Offering will be used to make payments to non-market parties (as defined in the policies of the TSX Venture Exchange (the “TSXV“)) of the Company nor to persons conducting investor relations activities (as defined in the policies of the TSXV).

Certain Company Insiders (the “insider“) acquired a total of 1,485,715 Units under the first tranche of the Offering. The Insiders’ participation in the Offering constitutes a “related party transaction” within the meaning of Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions (“MI 61-101“). The Company is exempt from the formal evaluation and approval requirements of minority shareholders under MI 61-101 with respect to such insider interest because neither the fair market value of the offer nor the fair market value of the consideration for which the insider makes more than 25 % of the company’s market capitalization.

In connection with the Offering, the Company paid certain finders commissions totaling $2,800 in cash and 80,000 finder’s warrants (each a “Finder’s Resolution“). Each Finder Warrant will entitle its holder to purchase one common share (a “Finder Share“) at a price of $0.05 per Finder Share for a period of twenty-four (24) months following the closing of the first tranche.

The offering and closing of the first tranche are subject to receipt of all necessary regulatory approvals, including TSXV approval. All securities issued and to be issued pursuant to the offering are subject to a hold period of four months and one day from the date of issuance in accordance with applicable Canadian securities laws.

This press release does not constitute an offer to sell, or the solicitation of an offer to purchase, any securities in the United States of America. The securities have not been and will not be purchased pursuant to the United States Securities Act of 1933 (the “Act of 1933“) or state securities laws and may not be offered or sold within the United States or to US persons (as defined under the 1933 Act) unless registered under the 1933 Act and applicable state securities laws or it there is an exception to such registration .

About Avidian Gold Corp.

Avidian brings together a disciplined and experienced team of project managers focused on late stage gold exploration projects in Alaska. The Company’s district-wide Golden Zone property hosts a NI 43-101 compliant indicated gold resource of 267,400 ounces (4,187,000 tonnes at 1.99 g/t Au) and an inferred gold resource of 35,900 ounces (1,353,000 tonnes at 0.83 g/t Au). g/t Au) within the breccia pipe deposit. This resource is exposed at surface and has been pit constrained for an open pit mining scenario. The technical report was submitted on November 17, 2017 and was prepared by Leon McGarry, B.Sc., P.Geo. and Ian D. Trinder, M.Sc., P.Geo. Other projects include the Amanita and Amanita NE gold properties, both adjacent to Kinross Gold’s Fort Knox gold mine in Alaska, and the Jungo gold-copper property in Nevada.

Avidian is a major shareholder in High Tide Resources (CSE: HTRC), which is focused on and committed to the development of late-stage mineral projects in Canada by leveraging industry best practices combined with a strong social license from local communities. High Tide earns a 100% interest in the Labrador West Iron Project, located adjacent to IOC/Rio Tinto’s 23 tonne per year Carol Lake mine in Labrador City, Labrador and owns a 100% interest in the Lac Pegma copper-nickel-cobalt deposit located 50 km southeast of Fermont, Quebec and earning a 100% interest in the Clearcut Lithium Project, located approximately 75 km southwest of Val d’Or, Quebec.

Additional details on the Company and individual projects, including NI 43-101 compliant technical reports on the Golden Zone property, can be found on the Company’s website at www.avidiangold.com.

For more information please contact:

Steve Robuck
President and CEO
Mobile: (905) 741-5458
E-mail: [email protected]

or

Dino Titaro
director
Mobile (647) 283 7600
E-mail: [email protected]

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.

Forward-Looking Information

This press release contains certain “forward-looking statements” that are not historical facts, including statements regarding the use of proceeds. Forward-looking statements include estimates and statements that describe the Company’s future plans, objectives or goals, including statements that state that the Company or management expects a specified condition or result to occur. Forward-looking statements may be identified by terms such as “believe,” “anticipate,” “expect,” “estimate,” “may,” “might,” “would,” “will,” or “plan.” Because forward-looking statements are based on assumptions and relate to future events and conditions, by their nature they involve risks and uncertainties. Although these statements are based on information currently available to the company, the company makes no representation that actual results will meet management’s expectations. Risks, uncertainties and other factors involved in forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward-looking information in this press release includes, without limitation, the scope of the offering, the closing and terms of the offering, the closing of the first trance, the timing and closing of the second tranche, and the use of the proceeds of the offering, objectives, goals or Company’s future plans, statements, exploration results, potential mineralization, estimates of mineral resources, exploration and mine development plans, timing of commencement of operations and estimates of market conditions. Factors that could cause actual results to differ materially from such forward-looking information include, among others, failure to complete the Offering on the terms provided or at all, the ability to anticipate the impact of the COVID-19 pandemic and to counteract them on the Company’s business, including but not limited to the impact of COVID-19 on capital markets, supply chain disruptions in commodity prices, restrictions on work and attendance at work, and local and international travel, failure to obtain required permits with respect to the bid, failure to identify mineral resources, failure to convert estimated mineral resources into reserves, failure to complete a feasibility study recommending a production decision, the preliminary nature of the metallurgical tester deposits events, delays in obtaining or failure to obtain required governmental, environmental or other project permits, political risks, inability to accommodate First Nations and other Indigenous peoples’ housing obligations, uncertainties related to the availability and cost of future funding needs , changes in stock markets, inflation, changes in exchange rates, fluctuations in commodity prices, delays in project development, material and operating cost estimates and the other risks inherent in the mineral exploration and development industry, as well as those risks inherent in listed in the company’s public documents filed on SEDAR. Although the Company believes that the assumptions and factors used in preparing the forward-looking information contained in this press release are reasonable, undue reliance should not be placed on such information, which speaks only as of the date of this press release and does not constitute any representation can be assumed that such events will occur in the periods indicated or at all. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.

SOURCE: Avidian Gold Corp.

View source version on accesswire.com:
https://www.accesswire.com/729896/Avidian-Gold-Announces-Closing-of-First-Tranche-of-Private-Placement

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