Altamira Gold Corp. (TSX-V: ALTA) (FSE: T6UP) (USA: EQTRF), is pleased to announce that, subject to final approval from the TSX Venture Exchange, it has closed its non-brokered private placement financing, previously announced on January 28, 2021. The Company issued 20,000,000 units at a price of $0.20 per Unit for gross proceeds of $4,000,000, representing an oversubscription of $300,000 from the originally announced Offering. Crescat Portfolio Management LLC participated with a lead order of $1,500,000.
Each Unit consists of one common share and one-half of one common share purchase warrant. Each Warrant entitles the holder to purchase one common share in the capital of the Company at an exercise price of $0.30 per share until February 5, 2023.
The proceeds from the Offering are to be used for general working capital and for exploration at its Cajueiro, Apiacas and Santa Helena projects. No finders’ fees were paid or are payable in connection with the Offering. All securities issued in connection with the Offering are subject to a four month hold period expiring on June 6, 2021.
Michael Bennett, President & CEO of Altamira Gold commented “We are extremely pleased to welcome Crescat, an award-winning global macro asset management firm, as a significant shareholder of the Company as we continue to unlock the mineral potential of the Alta Floresta belt. The confidence Crescat and its world-renowned technical advisor, Dr. Quinton Hennigh, have shown in Altamira is a vindication of our belief that the belt has world-class potential. This financing will allow us to advance exploration at our three most prospective projects which cover 162,206 hectares of this prolific gold belt.”
Dr. Quinton Hennigh, geologic advisor to Crescat, commented “Altamira have three high-quality near-drill ready gold projects in the Alta Floresta belt, Mato Grosso state, Brazil. These include: 1) a robust Au soil anomaly at the Maria Bonita target, part of the Cajueiro project, 2) the intriguing large intrusive gold system at Apiacas, and 3) the recently discovered high-grade vein system at Santa Helena. Usually we invest in companies with just one good project, but in this case, and with the commitment from Altamira management to drill test all three of these virgin targets over the coming year, we see a compelling case for significant discovery.”
Kevin Smith, Founder & CIO of Crescat Capital LLC, commented “When Quinton gets excited we get excited. That is the case here. Altamira is clearly onto an abundance of rich drill targets. We are eager to help fund the exploration and discovery effort.”
On closing of the Offering, the Company and Crescat entered into an participation rights agreement pursuant to which Crescat will be granted certain rights to maintain its percentage holdings of Shares in the Company through participation in future financings.
Pursuant to Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions the Company advises that the Offering constitutes a “related party transaction” under MI 61-101 and the Company is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 pursuant to section 5.5(b) and section 5.7(1)(b) of the instrument.
Guillermo Hughes, P. Geo., a consultant to the Company as well as a Qualified Person as defined by National Instrument 43-101, supervised the preparation of the technical information in this news release.
About Altamira Gold Corp.
The Company is focused on the exploration and development of gold projects within western central Brazil. The Company holds 9 projects comprising approximately 200,000 hectares, within the prolific Juruena gold belt which historically produced an estimated 7 to 10Moz of placer gold. The Company’s advanced Cajueiro project has NI 43-101 resources of 5.66Mt @ 1.02 g/t gold for a total of 185,000 oz in the Indicated Resource category and 12.66Mt @ 1.26 g/t gold for a total of 515,000oz in the Inferred Resource category.
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We acknowledge the [financial] support of the Government of Canada.