1911 Gold Secures C$13.2 Million in Funding to Boost Exploration
1911 Gold's Successful Funding Achievement
VANCOUVER, British Columbia — 1911 Gold Corporation (TSX-V: AUMB; Frankfurt: 2KY) has reached a significant milestone in its financing efforts with the completion of a major ‘bought deal’ offering. This initiative secured an impressive C$13,225,232.30, incorporating a full exercise of the Underwriters’ Option, initially defined in an earlier announcement.
Details of the Offering
The financing included the sale of several distinct classes of common shares. Specifically, it comprised:
- 3,750,000 common shares at C$0.20 each;
- 2,924,000 Tranche 1 CEE Shares at C$0.342;
- 31,163,633 Tranche 2 CEE Shares at C$0.288;
- 10,163,000 CDE Offered Shares at C$0.246.
Notably, the CEE and CDE Offered Shares are classified as “flow-through shares,” which are particularly beneficial for Canadian tax legislation.
Leadership Insights
Shaun Heinrichs, President and CEO of 1911 Gold, expressed enthusiasm over the offering's reception, stating that it exceeded expectations due to heavy oversubscription. A noteworthy highlight was the involvement of Eric Sprott, who significantly increased his stake, demonstrating investor confidence in the company’s future.
Eric Sprott’s Increased Investment
Through his company, 2176423 Ontario Ltd., Sprott purchased 9,288,734 common shares for nearly $1.86 million. This investment enhances his total holdings to 42,622,068 shares, reflecting about 17.2% non-diluted ownership. Such substantial backing from a prominent figure in the investment community underscores a positive outlook for the company's exploration initiatives.
Explore True North: A Promising Area
The proceeds from this offering are earmarked to enhance exploration activities at the True North underground mine, which stands as a key project for 1911 Gold. This mine not only has growth potential but also represents a significant strategic asset that the company plans to leverage for future development.
Strategic Use of Proceeds
According to the plans disclosed, the gross proceeds will be allocated towards eligible Canadian exploration expenses conforming to the relevant laws. The company has set intentions to utilize the funds efficiently in compliance with the Income Tax Act. This includes various deadlines for incurring costs and renunciating qualifying expenses, ensuring that the investments are used effectively to spark growth.
Future Opportunities on the Horizon
Beyond the True North mining complex, 1911 Gold is poised for ongoing strategic growth. The company maintains a land package of over 61,647 hectares in the highly prospective Archean Rice Lake greenstone belt. With a clear ambition to grow through organic pathways and targeted acquisitions, 1911 Gold seems focused on becoming a pivotal player in North American mining.
Maintaining Strong Community Relations
Understanding the importance of local community ties, 1911 Gold emphasizes respectful communication with the Hollow Water First Nation. The company is devoted to nurturing constructive relationships as it advances its strategic goals, highlighting its commitment to ethical business practices.
About 1911 Gold Corporation
As a junior explorer, 1911 Gold Corporation operates with a clear vision of exploration and development, particularly focusing on its True North complex. The company's aspiration to establish a robust mining district reflects its dedication to tapping into the rich resources in Manitoba.
Contact Information for Inquiries
For additional information, you may reach out to Shaun Heinrichs, Chief Executive Officer, at:
- Phone: (604) 674-1293
- Email: sheinrichs@1911gold.com
- Website: www.1911gold.com
Frequently Asked Questions
What was the purpose of the C$13.2 million offering?
The offering was aimed at raising funds for exploration and development at the True North underground mine.
Who led the financing deal for 1911 Gold?
Haywood Securities acted as the lead underwriter for the offering.
What types of shares were sold in the offering?
Common shares were sold, including non-flow-through shares and various classes of flow-through shares.
What is Eric Sprott's current stake in 1911 Gold?
Eric Sprott now owns approximately 17.2% of the company after his latest investment in the offering.
How does 1911 Gold plan to utilize the proceeds?
The company intends to fund Canadian exploration expenses and advance its strategic developments efficiently.
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