P2 Gold Inc. (TSX-V:PGLD) reports that it intends to complete a non-brokered private placement of up to 1.75 million flow-through units at a price of $0.29 per FT Unit for gross proceeds of up to approximately $500,000.
Each FT Unit will consist of one flow-through common share in the capital of the Company and one non-flow-through common share purchase warrant. The FT Shares will qualify as “flow-through shares” for purposes of the Income Tax Act (Canada). Each FT Warrant will entitle the holder to purchase one additional non-flow-through common share in the capital of the Company at an exercise price of $0.40 per common share for a period of two years from the date of issue, provided that, if after four months from the date of issue, the closing price of the common shares of the Company on the TSX Venture Exchange is equal to or greater than $0.80 for a period of 10 consecutive trading days at any time prior to the FT Expiry Time, the Company will have the right to accelerate the FT Expiry Time by giving notice to the holders of the FT Warrants by news release or other form of notice permitted by the certificate representing the FT Warrants that the FT Warrants will expire at 4:30 p.m. (Vancouver time) on a date that is not less than 15 days from the date notice is given.
The gross proceeds of the FT Offering will be used to fund exploration expenditures on the BAM Project and other Canadian Exploration Expenses that will qualify as “flow through mining expenditures” as defined in subsection 127(9) of the Income Tax Act (Canada), and “BC flow-through mining expenditures”, as defined in the Income Tax Act (British Columbia).
The FT Offering will close on completion of documentation and is conditional upon receipt of all necessary regulatory approvals, including the approval of the Exchange.
The FT Offering will be offered to accredited investors in all Provinces of Canada pursuant to applicable securities laws. In connection with the FT Offering, the Company may pay finders’ fees as permitted by the policies of the Exchange. All securities issued pursuant to the FT Offering will be subject to a four-month hold period. The securities offered pursuant to the FT Offering 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 absent registration or an applicable exemption from the registration requirements of such Act.
The Company anticipates that insiders may subscribe for FT Units. The issuance of FT Units to insiders is considered a related party transaction subject to Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions. The Company intends to rely on exemptions from the formal valuation and minority shareholder approval requirements provided under sections 5.5(a) and 5.7(a) of Multilateral Instrument 61-101 on the basis that the participation in the FT Offering by the insiders will not exceed 25% of the fair market value of the company’s market capitalization. A material change report in connection with the FT Offering will be filed less than 21 days before the closing of the FT Offering. This shorter period is reasonable and necessary in the circumstances as the Company wishes to complete the FT Offering in a timely manner.
About P2 Gold Inc.
P2 is a mineral exploration and development company focused on advancing precious metals and copper discoveries and acquisitions in the western United States and British Columbia.
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