Probe Gold Secures $45 Million in Private Placement
Probe Gold Inc. is thrilled to announce the successful closure of a significant upsized bought deal private placement, yielding $45,275,000 in gross proceeds. This financing round, expertly managed by a renowned syndicate of underwriters led by Canaccord Genuity Corp., along with Beacon Securities Limited and Scotiabank, is set to propel the company's expansion and exploration initiatives.
Details of the Offering
The offering consisted of the issuance of 6,250,000 common shares classified as “flow-through shares,” raising a total of $20,250,000. Additionally, 13,750,000 common shares were issued, accumulating an extra $25,025,000. Through this strategic combination, the company is equipped with the necessary funds to drive groundbreaking exploration efforts across its properties.
Strategic Application of Proceeds
Probe Gold plans to allocate the capital generated toward advancing the Novador Gold project and enhancing its exploration across various properties located in Québec. This approach not only solidifies their commitment to resource development but also emphasizes their dedication to utilizing the proceeds for substantial working capital. The company has set an ambitious timeline for the acknowledgment of qualifying expenditures pertaining to its exploratory efforts.
Flow-Through Shares and Tax Benefits
The funds raised from the issuance of flow-through shares are earmarked for eligible Canadian exploration expenses. Probe Gold aims to maximize these benefits under Canadian tax legislation, enabling qualifying expenditures to be recognized in prospective exploration venues. This strategic financial planning showcases the company's proactive stance in managing resources effectively while delivering value to its stakeholders.
Long-term Value Creation
The issuance of common shares under this offering will come with a holding period of four months, as mandated by Canadian securities regulations. This ensures compliance while reaffirming Probe Gold’s commitment to fostering transparency and integrity in its market engagements.
About Probe Gold
Probe Gold Inc. stands out as a prominent Canadian entity focused on the acquisition, exploration, and development of promising gold properties. The company possesses comprehensive exploration licenses, including the standout Novador Gold Project. This flagship asset, notable for its multimillion-ounce gold reserves, solidifies Probe’s reputation within the mining sector.
Expansive Exploration Grounds
Probe Gold commands an extensive land package of approximately 1,835 square kilometers in some of Québec’s most mineral-rich belts. This vast area positions Probe not only as a competitive player in the industry but also demonstrates its commitment to uncovering the full potential of its exploration and development capabilities.
Val-d’Or Properties
Adding to its portfolio, Probe Gold’s Val-d’Or properties boast impressive resources. They include 6,728,600 ounces classified as Measured and Indicated, and an additional 3,277,100 ounces categorized as Inferred. These figures highlight the significant potential and feasibility of further development in this region.
Meet the Leadership
Under the leadership of Dr. David Palmer, the President & CEO, Probe Gold is poised for a bright future. Dr. Palmer’s extensive experience and vision for the company guide its strategic initiatives and operational decisions. This strong leadership inspires confidence in Probe’s mission to explore and develop high-quality gold projects.
Contact Information
For more insights and updates, please reach out to:
Seema Sindwani
Vice-President of Investor Relations
info@probegold.com
+1.416.777.9467
Frequently Asked Questions
1. What is the total amount raised by Probe Gold in this placement?
Probe Gold raised a total of $45,275,000 through its recently completed upsized bought deal private placement.
2. How will the raised funds be utilized?
The proceeds will primarily be used to advance the Novador Gold project, explore other Québec properties, and for working capital.
3. What are flow-through shares and their benefits?
Flow-through shares allow investors to claim certain Canadian exploration expenses on their tax returns, providing financial benefits while supporting mining activities.
4. Who leads Probe Gold Inc.?
Probe Gold is led by Dr. David Palmer, the President and Chief Executive Officer, who plays a crucial role in its strategic planning and operations.
5. What is the significance of the Val-d’Or properties?
The Val-d’Or properties of Probe Gold contain substantial gold resources, which significantly enhance the company's exploration potential and future growth.
