Avidian Gold Provides an Update on a Non-Brokered Financing
TSX VENTURE: AVG
TORONTO, Ontario / TheNewswire / January 15, 2019 - Avidian Gold Corp. ("Avidian" or the "Company") (TSX-V:AVG) is pleased to provide an update on a previously announced non-brokered private placement of units of the Company for gross proceeds of up to $1,000,000 (the "Offering") earlier announced in press releases dated October 22, 2018 and November 21, 2018.
The Company announces an amendment to the terms of the Offering. The Offering will be conducted by way of a non-brokered private placement of up to 1,000 debenture units of the Company ("Units") each Unit consisting of a C$1,000 principal amount three (3) year unsecured interest-bearing convertible debenture (a "Debenture") and five thousand (5,000) common share purchase warrants of the Company (each a "Warrant").
Each Warrant will entitle the holder to acquire one common share of the Company (a "Common Share") at a purchase price of C$0.76 per share for a period of 36 months from the the closing of the Offering, subject to the Company's option to accelerate the term of the Warrants in the event that the trading price of Common Shares on the TSX Venture Exchange equals or exceeds $1.00 for twenty consecutive trading days by providing a 30 day notice to warrant holders.
The Debentures will be convertible into Common Shares at a price of $0.40 per Common Share ("Conversion Price") at an option of an investor at any time prior to maturity day of the Debenture.
The Debenture will bear an annual interest calculated a rate of either 8% or 12% as follows: Debentures will bear an 8% annual interest for investors who elect at the time of subscription for Units to receive the accrued interest in semi-annual cash payments; the Debenture will bear a 12% annual interest rate for investors who elect to receive the accrued interest through conversion of the interest into Common Shares at the Conversion Price upon the maturity of the outstanding principal amount of the Debentures, in which case the accrued interest will be added to the outstanding principal amount of Debentures on a semi-annual basis.
Management and insiders of the Company have indicated they will be participating in the Offering.
About Avidian Gold Corp.
Avidian Gold brings a disciplined and veteran team of project managers together with a regional scale advanced stage gold-copper exploration portfolio in Alaska. Avidian's Golden Zone project also hosts a NI 43-101 Indicated gold resource of 267,400 ounces (4,187,000 tonnes at 1.99 g/t Au) plus an Inferred gold resource of 35,900 ounces (1,353,000 tonnes at 0.83 g/t Au). Additional projects include Amanita which is adjacent to Kinross Gold's Fort Knox gold mine in Alaska, Jungo and Dome Hill in Nevada and Strickland in Newfoundland.
Avidian Gold is focused on and committed to the development of advanced stage mineral projects throughout first world mining friendly jurisdictions using industry best practices combined with a strong social license from local communities. Avidian Gold has 56,160,756 shares issued and outstanding.
For further information, please contact:
Nick Tintor, President and CEO
Mobile: 416 953 4244
Office: 416 987 0855
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
This News Release includes certain "forward-looking statements". These statements are based on information currently available to the Company and the Company provides no assurance that actual results will meet management's expectations. Forward-looking statements include estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as "believes", "anticipates", "expects", "estimates", "may", "could", "would", "will", or "plan". Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results relating to, among other things, results of exploration, project development, reclamation and capital costs of the Company's mineral properties, and the Company's financial condition and prospects, could differ materially from those currently anticipated in such statements for many reasons such as: changes in general economic conditions and conditions in the financial markets; changes in demand and prices for minerals; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; technological and operational difficulties encountered in connection with the activities of the Company; and other matters discussed in this news release. This list is not exhaustive of the factors that may affect any of the Company's forward-looking statements. These and other factors should be considered carefully and readers should not place undue reliance on the Company's forward-looking statements. The Company does not undertake to update any forward-looking statement that may be made from time to time by the Company or on its behalf, except in accordance with applicable securities laws
This news release does not constitute an offer of securities for sale in the United States. The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and such securities may not be offered or sold within the United States absent U.S. registration or an applicable exemption from U.S. registration requirements.