GGX Gold Corp (CVE:GGX) (OTCMKTS:GGXXF) said Wednesday it will raise up to $1.7 million in a non-brokered private placement as it looks to continue exploration at its Gold Drop property, located in southern BC.
The firm said it will raise up to $700,000 in non-flow-through financing and up to $1.05-million in flow-through financing.
Proceeds from the private placement will be used for the continued exploration work on the Gold Drop property, potential project acquisitions, property option payments as well as general working capital.
The firm recently announced it has now completed 20 diamond drill holes on the COD vein at the Gold Drop project in British Columbia since the exploration season began in mid-April. Ten of the holes hit the COD quartz vein at their target depths, of which eight were visibly mineralized with pyrite.
Flow-through units will be priced at $0.30 and non-flow-through units will be priced at $0.20.
Each non-flow-through unit will consist of one common share and one share purchase warrant, with each non-flow-through warrant entitling the holder to purchase one common share for $0.30 for a period of up to 18 months after closing.
Each flow-through unit will consist of one common share and one-half share purchase warrant, with each whole flow-through warrant entitling the holder to purchase one non-flow-through common share for $0.35 for a period of up to 18 months after closing.
Flow-through shares are a unique financing vehicle for junior resource companies in Canada, allowing investors to receive tax incentives.
Proceeds from GGX's flow-through shares will be used for exploration, in accordance with the Canada's Income Tax Act.
All securities issued under the placement will be subject to a four-month hold period from the date of issue and the placement is subject to final acceptance of the TSX Venture Exchange.
Shares of GGX were at $0.26 on Wednesday.
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