Beauce Gold Fields Closes Private Placement
TSX VENTURE: BGF
MONTREAL, Sept. 09, 2019 (GLOBE NEWSWIRE) -- Beauce Gold Fields (Champs D’Or en Beauce) (BGF) (TSX Venture: ¨BGF¨) is pleased to announce that BGF, pursuant to the release issued August 19, 2019, closes a private placement of 1,732,500 units ("Unit") at $0.10 per Unit for a gross proceeds of up to $173,250. Each Unit is comprised of one (1) common share and one (1) common share purchase warrant of the Company. Each Warrant will entitle the Subscribers to purchase one common share of the capital stock of the Company at an exercise price of $ 0.15 for a period of 24 months from the date of closing of the placement. Each share issued pursuant to the placement will have a mandatory four (4) month and one (1) day holding period from the date of closing of the placement. The Company will use the proceeds from the private placement for general corporate purposes.
Mr. Robert Gagnon, Director of BGF has subscribed for 50,000 Units. Following the completion of the Private Placement, Mr. Robert Gagnon will own or exercise control or direction over, directly or indirectly, 50,000 Common Shares, representing approximately 0.24% of the issued and outstanding Common Shares of the Company.
The participation of Mr. Gagnon in the Private Placement constitutes a "related party transaction" within the meaning of Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions ("MI 61-101") and Policy 5.9 - Protection of Minority Security Holders in Special Transactions of the Exchange. In connection with this related party transaction, the Company is relying on the formal valuation and minority approval exemptions of respectively subsection 5.5(a) and 5.7(1)(a) of MI 61-101 as the fair market value of the portion of the Private Placement subscribed by Mr. Gagnon does not exceed 25% of the Company's market capitalization. The Board of directors of the Company has approved the Private Placement, including the participation of Mr. Gagnon therein, with Mr. Gagnon abstaining with respect to his participation.
In connection with the placement the Company paid cash finder’s fee of $1,600 to StephenAvenue Securities Inc. (“StephenAvenue”) of Toronto, Ontario. The Company also issued 16,000 warrants to StephenAvenue. Each warrant and any share purchased through the exercise of the warrants have the mandatory four (4) month and one (1) day holding period from the date of closing of the placement and gives StephenAvenue the right to purchase one (1) common share at $ 0.15 for 24 months.
About Beauce Gold Fields
Beauce Gold Fields is a gold exploration company focused on placer to hard rock exploration in the Beauce region of Southern Quebec. The Company’s flagship property is the St-Simon-les-Mines Gold project, a unique, historically significant gold property located in the municipality of Saint-Simon-les-Mines. Comprising of a block of 152 claims as well as 7 real estate lots, the project area hosts a six kilometre long unconsolidated gold-bearing sedimentary unit (a lower saprolite and an upper brown diamictite). Textural observations (angularity) of gold nuggets suggest a relatively proximal source and therefore a short transport distance. The gold in saprolite indicates a close proximity to a bedrock source of gold, providing possible further exploration discoveries. The property was host to Canada’s first gold rush before the one in the Yukon Klondike. It hosts some of the largest historical placer gold mines in Eastern North America that were active from 1860s to the 1960s (see HPQ SEDAR-filed July 4 2018 43-101 report).
Beauce Gold Fields website www.beaucegold.com
BGF Presentation: http://beaucegold.com/wp-content/uploads/2019/04/BGF-Presentation-20191.pdf
This press release contains certain forward-looking statements, including, without limitation, statements containing the words "may", "plan", "will", "estimate", "continue", "anticipate", "intend", "expect", "in the process" and other similar expressions which constitute "forward-looking information" within the meaning of applicable securities laws. Forward-looking statements reflect the Company's current expectation and assumptions, and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated. These forward-looking statements involve risks and uncertainties including, but not limited to, our expectations regarding mineral exploration. Such statements reflect the current views of the Company with respect to future events and are subject to certain risks and uncertainties and other risks detailed from time-to-time in the Company's on-going filings with the securities regulatory authorities, which filings can be found at www.sedar.com. Actual results, events, and performance may differ materially. Readers are cautioned not to place undue reliance on these forward-looking statements. The Company undertakes no obligation to publicly update or revise any forward-looking statements either as a result of new information, future events or otherwise, except as required by applicable securities laws.
Neither the 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 release.
For further information contact
Patrick Levasseur, President and CEO Tel: (514) 262-9239
Bernard J. Tourillon, Chairman and COO Tel (514) 907-1011
Shares outstanding: 18,716,666