TORONTO, July 14, 2020 (GLOBE NEWSWIRE) -- Avidian Gold Corp. (“Avidian” or the “Company”) (TSX-V: AVG) is pleased to announce that it has closed the previously announced (see July 6, 2020 and July 10, 2020 news releases) non-brokered, private placement for gross proceeds of $2,000,000 (the “Offering”). The private placement consisted of “Units” at $0.10 per Unit. Each Unit consists of one common share of the Company (a “Common Share”) and one Common Share purchase warrant (a “Warrant”) exercisable into a Common Share at a price of $0.14 for twenty-four (24) months following the issuance of Warrants. The terms of the Warrants restrict the exercise of the Warrants if such exercise would cause the warrant holder to hold 20% or more of the Common Shares without having previously obtained required approvals in accordance with the policies of the TSX Venture Exchange.
The Company advises that Mr. Eric Sprott has acquired the 20,000,000 Units pursuant to the Offering and that the Company has determined that it is in the best interest of its shareholders to decrease the size of the Offering from the previously announced $2,500,000 to $2,000,000.
David Anderson, Chairman and CEO of Avidian states: “We are very pleased to welcome Eric on board as a major shareholder. Eric is a recognized gold expert and his investment in Avidian is in our opinion, recognition of the potential of the advanced stage, exploration projects we hold in Alaska and Nevada. His investment is significant and timely as we launch our summer programs. We look forward to announcing detailed exploration plans in the coming days.”
The net proceeds from the Offering shall be primarily used for the development of Avidian’s mineral properties and for general and administrative expenses. The securities issued pursuant to the Offering will be subject to four months and a day statutory hold period in accordance with applicable Canadian securities laws.
Subsequent to the closing of the Offering, Mr. Sprott, who previously held no securities of the Company and who acquired 20,000,000 Units pursuant to the Offering for a total consideration of $2,000,000 through 2176423 Ontario Ltd., a corporation that is beneficially owned by him, beneficially owns or controls 20,000,000 Common Shares and 20,000,000 Warrants representing approximately 17.48% of the issued and outstanding Common Shares on a non-diluted basis and approximately 29.76% of the issued and outstanding Common Shares on a partially diluted basis assuming exercise of the Warrants.
The Units were acquired by Mr. Sprott for investment purposes. Mr. Sprott has a long-term view of the investment and may acquire additional securities of Avidian or dispose of securities of Avidian, including on the open market or through private acquisitions or disposition in the future depending on market conditions, reformulation of plans and/or other factors that Mr. Sprott considers relevant from time to time. For the purposes of this notice, the address of Mr. Sprott is 200 Bay Street, Suite 2600, Royal Bank Plaza, South Tower, Toronto, Ontario M5J 2J1.
In satisfaction of the requirements of the National Instrument 62-104 – Take-Over Bids and Issuer Bids and National Instrument 62-103 – The Early Warning System and Related Take-Over Bid and Insider Reporting Issues, an Early Warning report respecting the acquisition of Units by and a copy of the early warning report may also be obtained by calling Mr. Sprott’s office at (416) 945-3294 (200 Bay Street, Suite 2600, Royal Bank Plaza, South Tower, Toronto, Ontario M5J 2J1).
About Avidian Gold Corp.
Avidian brings a disciplined, experienced, exploration team together with a regional scale advanced stage gold-copper exploration portfolio in Alaska. Avidian’s Golden Zone project hosts a NI 43-101 Indicated gold resource of 267,400 ounces (4,187,000 tonnes at 1.99 g/t Au) plus an Inferred gold resource of 35,900 ounces (1,353,000 tonnes at 0.83 g/t Au). Additional projects include the Amanita gold property which is adjacent to Kinross Gold’s Fort Knox gold mine in Alaska and the Jungo gold/copper property in Nevada.
The information in respect of the Golden Zone project is adopted from the Technical Report on the Golden Zone Property, August 17, 2017, L. McGarry P.Geo & I. Trinder P.Geo, A.C.A Howe International Ltd (the “Technical Report”).
Avidian is the majority owner of High Tide Resources, a private company with an option on the Labrador West iron ore property and owns the base metal Strickland Property and the Black Raven gold property, all located in Newfoundland and Labrador, Canada.
Avidian is focused on and committed to the development of advanced stage mineral projects throughout first world mining friendly jurisdictions using industry best practices combined with a strong social license from local communities. Further details on the Corporation and the individual projects, including the NI 43-101 Technical report on the Golden Zone property, can be found on the Corporation’s website at www.avidiangold.com.
The technical information in this news release has been approved by Steve Roebuck, P.Geo and President of Avidian Gold, who is a Qualified Person as defined in National Instrument 43-101 - Standards of Disclosure for Mineral Projects.
For further information, please contact:
Steve Roebuck, President
E: sroebuck@avidiangold.com or +1(905) 741-5458
E: info@avidiangold.com
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
Forward-looking information
This News Release includes certain "forward-looking statements". These statements are based on information currently available to the Company and the Company provides no assurance that actual results will meet management's expectations. Forward-looking statements include estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as "believes", "anticipates", "expects", "estimates", "may", "could", "would", "will", or "plan". Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Although these statements are based on information currently available to the Company, the Company provides no assurance that actual results will meet management’s expectations. Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward looking information in this news release includes, but is not limited to, the Company’s objectives, goals or future plans, statements, exploration results, potential mineralization, the estimation of mineral resources, exploration and mine development plans, timing of the commencement of operations and estimates of market conditions. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to: the ability to anticipate and counteract the effects of COVID-19 pandemic on the business of the Company, including without limitation the effects of COVID-19 on the capital markets, commodity prices supply chain disruptions, restrictions on labour and workplace attendance and local and international travel, failure to receive requisite approvals in respect of the Offering, failure to identify mineral resources, failure to convert estimated mineral resources to reserves, the inability to complete a feasibility study which recommends a production decision, the preliminary nature of metallurgical test results, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, political risks, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects, capital and operating costs varying significantly from estimates and the other risks involved in the mineral exploration and development industry and those risks set out in the Company’s public documents filed on SEDAR. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. These and other factors should be considered carefully and readers should not place undue reliance on the Company's forward-looking statements. The Company does not undertake to update any forward-looking statement that may be made from time to time by the Company or on its behalf, except in accordance with applicable securities law.