Medgold Resources Corp. (TSX-V: MED) is pleased to announce that due to strong interest from investors, the Company has increased the size of its previously announced private placement financing. The Company has now closed the placement with the issuance of 4,902,800 units at $0.30 per unit, raising gross proceeds of $1,470,840. Each unit consists of one common share and one full warrant, each warrant entitling the holder to purchase one additional common share of the Company at $0.40 for two years from closing. The warrants are subject to an acceleration provision such that if the closing price of the Company’s shares for 10 consecutive trading days is $0.60 or greater, the Company may give notice to the holders of the warrants that the warrants will expire 30 calendar days after receipt of such notice. The shares and warrants issued are subject to a resale restriction until February 18, 2019.
The Company paid cash finder’s fees totaling $22,409 on a portion of this financing. The proceeds of the placement are intended to be used for exploration of the Company’s 100% owned Ljubata Project in Serbia, project generation, and for general working capital purposes.
A portion of this private placement is considered to be a “related party transaction”, pursuant to Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions. The Company has determined that exemptions from the formal valuation and minority shareholder approval requirements of MI 61-101 were available for the related party transaction, pursuant to Section 5.5(a) and Section 5.7(a) of MI 61-101, on the basis that the fair market value consideration of the transaction involving the related parties was not more than 25% of the Company’s market capitalization.
The securities referred to in this news release have not been, and will not be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from the registration requirements of such Act. This news release shall not constitute an offer to sell, nor the solicitation of an offer to buy, any securities. Any public offering of securities in the United States must be made by means of a prospectus containing detailed information about the company and management, as well as financial statements.
About Medgold Resources Corp.
Medgold is a Serbia-focused, TSX-V listed, project generator company targeting early-stage gold properties in the Oligo-Miocene Belt of Serbia. Run by an experienced management team with a successful track-record of building value in resource companies, Medgold is aiming to become a leading European gold exploration company.
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