GFG Announces C$2.5 Million Flow-Through Private Placement
SASKATOON, Saskatchewan, April 03, 2025 (GLOBE NEWSWIRE) -- GFG Resources Inc. (TSXV:GFG) (OTCQB:GFGSF) ("GFG" or the "Company") announces a private placement of premium flow-through units ("Premium Units") to raise gross proceeds of up to C$2.5 million (the "Offering"). As part of the Offering, the Company is pleased to announce that Alamos Gold Inc. (TSX:AGI; NYSE: AGI), (TSX: AGI; NYSE:AGI) has committed to purchase securities in the Offering to maintain their position at a 10.8% interest in the Company upon completion of the Offering.
Brian Skanderbeg, President and CEO of GFG commented, "With the support of our largest shareholder, the current financing enables us to step-up our exploration efforts and leverage cost-effective flow-through capital. Upon completion of this financing, GFG will be in a very strong financial position, allowing us to continue to capitalize on opportunities and build value for our shareholders."
The Offering will consist of the issuance of up to 9,201,325 Premium Units at a price of C$0.2717 per Premium Unit. Each Premium Unit shall consist of one common share of the Company and one-half of one share purchase warrant, with each whole share purchase warrant (a "Warrant") entitling the holder thereof to acquire one additional common share of the Company at an exercise price of C$0.28 for a period of 24 months from the date of issuance. Each of the common shares and Warrants comprising the Premium Units will qualify as a "flow-through share" for the purposes of the Income Tax Act (Canada).
If during the exercise period of the Warrants the closing price of the common shares of the Company is at a price equal to or greater than C$0.42 for a period of 10 consecutive trading days, GFG will have the right to accelerate the expiry date of the Warrants by giving notice, via a news release, to the holders of the Warrants that the Warrants will expire on the date that is 30 days after the issuance of said news release.
The Offering is scheduled to close on or about May 2, 2025, and is subject to certain conditions, including, but not limited to, the receipt of all necessary approvals, including the approval of the TSX Venture Exchange. The Company may pay finder's fees on a portion of the Offering of up to 6% of the aggregate gross proceeds raised. The finder's fees shall be paid in accordance with applicable securities laws and the policies of the TSX Venture Exchange.
Subject to compliance with applicable regulatory requirements and in accordance with National Instrument 45-106, Prospectus Exemptions ("NI 45-106"), the Premium Units will be offered for sale to purchasers resident in Canada and/or other qualifying jurisdictions pursuant to ...
https://www.benzinga.com/pressreleases/25/04/g44623881/gfg-announces-c-2-5-million-flow-through-private-placement
