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HighGold Mining Announces Closing of $13.8 Million Upsized Bought Deal Financing

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HighGold Mining Announces Closing of $13.8 Million Upsized Bought Deal Financing

 

 

 

 

 

HighGold Mining Inc. (TSXV: HIGH) is pleased to announce that it has closed its previously announced upsized bought deal offering of 7,976,975 common shares at a price of $1.73 per Offered Share for aggregate gross proceeds of $13,800,166.75, which included the full exercise of the over-allotment option granted to the Underwriters (as defined below).

 

In connection with the Offering, the Company announces that it has issued an additional 446,500 common shares of the Company to an existing strategic shareholder of the Company pursuant to the shareholder’s election to exercise its participation right under an investor rights agreement (see news release dated July 13, 2020). The Participation Shares were issued at a price of $1.73 per Participation Share for gross proceeds of $772,445.

 

“With the closing of the financing, HighGold has $23 million in working capital, placing us in a strong position to materially advance our flagship Johnson Tract Gold Project in Alaska,” commented President & CEO Darwin Green. “We are very pleased to welcome several new, large institutional shareholders to HighGold’s registry. We are also grateful for the continued support of several existing major shareholders that participated in the financing. HighGold now looks forward to putting these funds to work.”

 

The Offering was made through a syndicate of underwriters led by Cormark Securities Inc., including Canaccord Genuity Corp., Stifel Nicolaus Canada Inc., Haywood Securities Inc. and Sprott Capital Partners LP. The Company paid to the Underwriters a cash commission equal to 5% of the gross proceeds realized by the Company from the Offering.

 

The Company intends to use the net proceeds from the Offering and the Participation Right Exercise for mineral exploration and general corporate purposes, including expanding the scope and the scale of its recently commenced 2020 Johnson Tract drill program in Alaska, USA (see news release dated July 22, 2020). The Offered Shares and the Participation Shares are subject to a four-month and one day hold period in Canada.

 

This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. This news release does not constitute an offer of securities for sale in the United States. The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and such securities may not be offered or sold within the United States absent registration under U.S. federal and state securities laws or an applicable exemption from such U.S. registration requirements.

 

About HighGold

 

HighGold is a mineral exploration company focused on high-grade gold projects located in North America. HighGold’s flagship asset is the high-grade Johnson Tract Gold (Zn-Cu) Project located in accessible Southcentral Alaska, USA that contains an Indicated Resource of 2.14 Mt grading 10.93 g/t gold equivalent (AuEq) for 750,000 ounces AuEq and an additional Inferred Resource of 0.58 Mt grading 7.16 g/t gold equivalent for 134,000 ounces AuEq (see Technical Report titled “Initial Mineral Resource Estimate for the Johnson Tract Project, Alaska” dated June 15, 2020) along with excellent exploration potential indicated by several other prospects over a 12-kilometer strike length. The Company also controls a portfolio of quality gold projects in the greater Timmins gold camp, Ontario, Canada that includes the Munro-Croesus Gold property, which is renowned for its high-grade mineralization, and the large Golden Mile and Golden Perimeter properties. HighGold’s experienced Board and senior management team, are committed to creating shareholder value through the discovery process, careful allocation of capital, and environmentally/socially responsible mineral exploration.

 

Posted July 28, 2020

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