Deal funds exploration; shares sold at C$0.65 each, a 32.65% premium
By Devika Patel
Knoxville, Tenn., June 17 – Victoria Gold Corp. said it completed a C$2.85 million private placement of stock on Nov. 26.
The company sold 4,384,615 flow-through common shares at C$0.65 apiece. The price per share is a 32.65% premium to C$0.49, the June 16 closing share price.
Proceeds will be used for exploration and drilling.
“This flow-through financing is the result of a combination of encouraging factors,” president and chief executive officer John McConnell said in a press release. “First and foremost, the 2016 exploration program at Olive and Shamrock has given us confidence that our geological model is accurate and Shamrock deserves a follow-up drill program immediately.
“Furthermore, the first phase of drilling this year has been the most efficient drill program we have ever conducted at Dublin Gulch and that is expected to continue into phase 2.
“Finally, the favorable premium we were able to secure on the financing allows for us to preserve our hard dollars while minimizing dilution.”
In connection with the sales, the company paid a 5% cash finder's fee to Marquest Asset Management Inc. and Secutor Capital Management Corp.
Victoria Gold is a gold exploration company based in Toronto.
Issuer: | Victoria Gold Corp.
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Issue: | Flow-through common shares
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Amount: | C$2.85 million
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Shares: | 4,384,615
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Price: | C$0.65
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Warrants: | No
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Settlement date: | June 17
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Stock symbol: | TSX Venture: VIT
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Stock price: | C$0.49 at close June 16
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Market capitalization: | C$180.55 million
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