GGX Gold Corp. (CVE:GGX) (OTCQB:GGXXF) (FRA:3SR2) said it has arranged a non-brokered private placement of up to 2 million flow-through shares at a price of $0.16 per share for gross proceeds of $320,000.
Proceeds from the private placement will be used for the continued exploration work on the Gold Drop Property in the Greenwood mining camp of south-central British Columbia.
READ: GGX Gold provides exploration update on Gold Drop property in the Greenwood Mining Camp of south-central British Columbia
Each flow-through unit will comprise of one common share (which is a flow-through share for Canadian income tax purposes) and one share purchase warrant. Each whole warrant will entitle the holder to purchase one additional common share at the price of $0.20 for 18 months after closing.
The term of the warrants may be accelerated in the event that the issuer's shares trade at or above a price of $0.25 cents per share for a period of 10 consecutive days. In such case of accelerated warrants, the issuer may give notice to the subscribers that the warrants will expire 20 days from the date of providing such notice.
All securities issued under the offering will be subject to a hold period of four months and one day from the date of closing. The offerings and payment of finders' fees are both subject to approval by the Toronto Venture Exchange.
On Tuesday, GGX announced that diamond drilling is now commencing on the Perky vein, a new discovery vein, where promising assay results were obtained from surface trenching this year.
As previously reported, the company said grab and channel sample results ranged up to 54.0 grams per tonne gold, 303 grams per tonne silver and 397 grams per tonne tellurium. Channel samples assays averaged 22.7 grams per tonne gold, 107.6 grams per tonne silver and 67.0 grams per tonnes tellurium over a sampled length of 10.3 metres.
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