Rocky Shore Gold Completes First Tranche of Private Placement
Rocky Shore Gold Ltd. (CSE: RSG) has announced the successful closure of the first tranche of its recent non-brokered private placement, raising significant funds to support its ongoing exploration efforts. This financing round, known as the "First Tranche," resulted in gross proceeds of C$697,500, showcasing strong investor interest and confidence in the company's future.
Financial Details of the First Tranche
In total, the First Tranche saw the issuance of 6,800,000 units, priced at C$0.05 per unit. Each unit includes one common share and half a common share purchase warrant. Additionally, 7,150,000 common shares classified as "flow-through shares" were issued under the same pricing structure. This approach ensures Rocky Shore maximizes its financial resources while enhancing shareholder value.
Warrants and Future Opportunities
The structure of the warrants issued allows holders to acquire more common shares at a future price of C$0.10 until September 2, 2028. This potential for additional shares allows for an exciting investment opportunity as the company progresses and the market responds to exploration results. Also, if the shares hit or exceed C$0.20 for 20 consecutive days, this could accelerate the exercise period, presenting further prospects for both the company and its investors.
Utilization of Proceeds
Funds garnered from the placement will primarily be allocated for general corporate purposes, as well as advancing exploration at the Gold Anchor Project. Located in central Newfoundland, this project stands out within one of Canada’s rich gold districts, ideal for future discoveries and development.
The Gold Anchor Project
Rocky Shore Gold's Gold Anchor Project covers over 1,200 square kilometers and is consistently positioned for significant gold exploration. The project is strategically situated along known gold trends, with multiple mineralized zones identified, including the promising Appleton and JBP Faults. This makes Gold Anchor a compelling prospect for investors looking to capitalize on mineral exploration.
Finder’s Fees and Total Compensation
In conjunction with the First Tranche, Rocky Shore Gold paid cash finder’s fees and issued 606,000 finder's warrants to eligible finders. Each of these warrants carries an exercise price of C$0.05 per common share and is valid until March 2, 2027. These measures not only reward the finders but also bolster the overall structure of the investment round.
Looking Ahead for Rocky Shore Gold
The successful closure of this initial tranche significantly strengthens Rocky Shore Gold's position in the marketplace. The company appreciates the community's financial support, particularly from the Junior Exploration Assistance Program, which endorses exploration initiatives in Newfoundland.
Company Contact Information
For investors and interested parties wanting to learn more about Rocky Shore Gold, CEO Ken Lapierre is available for inquiries at +1 (647) 678-3879, or via email at ken@rockyshoregold.com. For inquiries regarding investment relations, Cathy Hume from CHF Capital Markets can be contacted at +1 (416) 868-1079 x 251, or at cathy@chfir.com.
Frequently Asked Questions
What is the purpose of the funding raised in the First Tranche?
The funds will be used for general corporate purposes and to advance the Gold Anchor Project exploration.
How much money did Rocky Shore Gold raise?
The company raised C$697,500 through this funding round.
What are the key features of the warrants issued?
Each warrant allows holders to buy additional shares at C$0.10 until September 2, 2028, and may be subject to acceleration based on trading conditions.
Where is the Gold Anchor Project located?
The Gold Anchor Project is located in central Newfoundland, known for its rich potential in gold exploration.
Who can I contact for more information about Rocky Shore Gold?
Inquiries can be directed to CEO Ken Lapierre at +1 (647) 678-3879 or email him at ken@rockyshoregold.com.
