SASKATOON, SASKATCHEWAN--(Marketwired - Jan. 31, 2017) - GFG Resources Inc. (TSX VENTURE:GFG)(OTCQB:GFGSF) ("GFG" or the "Company") is pleased to announce that it has entered into an agreement with a syndicate of underwriters led by Cormark Securities Inc., pursuant to which the underwriters have agreed to purchase 4,350,000 common shares ("Common Shares") at a price of C$1.15 per Common Share of the Company, on a bought deal private placement basis, for aggregate gross proceeds to the Company of approximately C$5.0 million (the "Offering").
The Company has also granted the underwriters an option to purchase up to 15% of the number of Common Shares sold pursuant to the Offering, exercisable at any time prior to the closing of the Offering.
The net proceeds from the sale of the Common Shares will be used towards the Company's 2017 exploration drilling program at its 100% owned Rattlesnake Hills gold project in Wyoming, U.S. and for general corporate purposes.
The Offering is scheduled to close on or about February 21, 2017 and is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory and other approvals including the approval of the TSX Venture Exchange.
The securities to be issued under the Private Placement have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws, and accordingly, may not be offered or sold within the United States except in compliance with the registration requirements of the U.S. Securities Act and applicable state securities requirements or pursuant to exemptions therefrom. This news release does not constitute an offer to sell or a solicitation of an offer to buy any of GFG's securities in the United States.
"Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."
GFG Resources Inc. is a publicly traded precious metals exploration company headquartered in Saskatoon, Saskatchewan, Canada, whose shares trade on the TSX Venture Stock Exchange (GFG) and on the OTCQB (GFGSF). The Company owns 100% of the Rattlesnake Hills Gold Project, a district scale gold exploration project located approximately 100 kilometres southwest of Casper, Wyoming U.S. The geologic setting, alteration and mineralization seen in the Rattlesnake Hills are similar to other gold deposits of the Rocky Mountain alkaline province which, collectively, have produced over 50 million ounces of gold.
