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Gatling Exploration launches $5M private placement and 2-for-1 share consolidation

The offering will consist of a combination of 5,454,545 post-consolidated shares issued on a flow-through basis at $0.55 each and 4 million units at $0.50 apiece

Gatling Exploration - Gatling Exploration Inc launches $5 million private placement and complete a two for one common share consolidation
Upon completion of the consolidation, there will be about 31,015,670 shares issued and outstanding

Gatling Exploration Inc (CVE:GTR)(OTCQB:GATGF) announced Wednesday a marketed private placement to raise up to $5 million. 

In addition, prior to the completion of the offering, the company said it will complete a two for one (2:1) common share consolidation of all of its outstanding securities.

In a statement, Gatling said there are currently 62,031,340 common shares issued and outstanding. Upon completion of the consolidation, there will be about 31,015,670 shares issued and outstanding. 

READ: Gatling Exploration discovers third gold trend at its Kir Vit prospect at Larder project

The company said the offering will consist of a combination of 5,454,545 post-consolidated shares issued on a flow-through basis (FT shares) at $0.55 each and 4 million units at $0.50 apiece. 

Each unit will consist of one post-consolidated common share and one-half of one transferable share purchase warrant, exercisable into one additional post-consolidated common share at $0.70 each. The warrants will be exercisable for two years from the date of issue. 

In connection with the offering, the agents led by Sprott Capital Markets LP will be entitled to a cash fee in an amount equal to 6% of the gross proceeds. The company also will grant the agents common share purchase warrants entitling them to subscribe for that number of common shares equal to 6% of the aggregate number of units placed and 5% of the aggregate number of FT shares placed. Subject to regulatory approval, each broker warrant will be exercisable to acquire one common share at $0.70 each for a period of 24 months after the closing date.

The gross proceeds will be used for Canadian exploration expenses, and will qualify as "flow-through mining expenditures,” which will be renounced to the subscribers with an effective date no later than December 31, 2020.

Quick facts: Gatling Exploration

Price: 0.425 CAD

TSX-V:GTR
Market: TSX-V
Market Cap: $16.89 m
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