TORONTO, Dec. 16, 2020 (GLOBE NEWSWIRE) — Stone Gold Inc. (TSX-V: STG) (“Stone Gold” or the “Company“) is pleased to announce that it intends to complete a non-brokered private placement of up to 2,500,000 flow-through units (“FT Units”) at a price of C$0.20 per FT Unit for gross proceeds of up to C$500,000 (the “Offering”). The Company shall reserve the right to increase the size of the Offering by up to 25%, at its discretion.
Each FT Unit will be comprised of one (1) common share of the Company one common share of the Company issued on a flow-through basis within the meaning of the Income Tax Act (Canada) (a “FT Share”), and one-half of one (0.5) common share purchase warrant (each whole warrant, a “Warrant”), with each Warrant entitling the holder thereof to acquire one additional common share of the Company at a price of $0.30 for a period of twenty-four (24) months following the closing of the Offering.
The proceeds from the issuance of the FT Units will be used for “Canadian exploration expenses” and will qualify as “flow-through mining expenditures” (the “Qualifying Expenditures“), as defined in subsection 127(9) of the Income Tax Act (Canada). The Company intends to renounce the Qualifying Expenditures to subscribers of FT Units for the fiscal year ended December 31, 2020.
The Offering is subject to receipt of all necessary regulatory approvals, including approval of the TSX Venture Exchange. The securities issued pursuant to the Offering will be subject to a statutory hold period of four months and one day in accordance with applicable securities laws.
For further information, please contact:
Mr. John Timmons
President & CEO
Stone Gold Inc.
Cellular (416) 931 2243
Email: [email protected]