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1911 Gold Corporation Announces $5.2 Million "Bought Deal"

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ThSeeker Member Level  Tuesday, 06/23/20 09:10:24 AM
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1911 Gold Corporation Announces $5.2 Million "Bought Deal" Private Placement of Flow-Through Shares

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TORONTO, June 23, 2020 /CNW/ - 1911 Gold Corporation ("1911 Gold" or the "Company") (TSXV: AUMB) is pleased to announce that it has entered into an agreement with Canaccord Genuity Corp. on behalf of a syndicate of underwriters (collectively, the "Underwriters") in connection with a bought deal private placement of 8,200,000 common shares of the Company that will qualify as "flow-through shares" (within the meaning of subsection 66(15) of the Income Tax Act (Canada)) (collectively, the "Flow-Through Shares") for aggregate gross proceeds of $5,208,000 (collectively, the "Offering"). The Flow-Through Shares will be issued in two tranches. Tranche one will consist of 4,275,000 Flow-Through Shares (the "Premium FT Shares") at a price of $0.75 per Premium FT Share to purchasers resident in Manitoba for aggregate gross proceeds of $3,206,250. Tranche two will consist of 3,925,000 Flow-Through Shares (the "National FT Shares") at a price of $0.51 per National FT Share for aggregate gross proceeds of $2,001,750.

The Company has also granted the Underwriters an option, exercisable in whole or in part at any time up to 48 hours prior to closing of the Offering, which will allow the Underwriters to sell up to an additional 660,000 Premium FT Shares on the same terms for additional gross proceeds of up to $495,000.

The gross proceeds from the sale of the Flow-Through Shares will be used by the Company to incur eligible "Canadian exploration expenses" (as defined in the Income Tax Act (Canada)) that will qualify as "flow-through mining expenditures" (as defined in the Income Tax Act (Canada) and, in respect of the Premium FT Shares, subsection 11.7(1) of The Income Tax Act (Manitoba)) (the "Qualifying Expenditures") related to the Company's projects in Manitoba. All Qualifying Expenditures will be renounced in favour of the subscribers of the Flow-Through Shares effective December 31, 2020.

The Offering is expected to close on or about July 14, 2020 and is subject to certain closing conditions including, but not limited to, the receipt of all necessary approvals including the conditional acceptance of the TSX Venture Exchange. The Offering is being made by way of private placement in Canada pursuant to applicable exemptions from the prospectus requirements under applicable Canadian securities laws. The securities issued under the Offering will be subject to a hold period under applicable Canadian securities laws expiring four months and one day from the closing date of the Offering.

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