Esgold closes $7.26-million private placement

Executive Summary

• Esgold Corp. has closed its previously announced best-effort private placement, raising gross proceeds of C$7,264,440.
• The company issued 10,683,000 units at a price of C$0.68 per unit, including the partial exercise of the agent's over-allotment option.
• Net proceeds are designated for the advancement of the Montauban project in Quebec, general working capital, and corporate purposes.

Key Details

• Gross Proceeds: C$7,264,440.
• Units Sold: 10,683,000 units.
• Price Per Unit: C$0.68.
• Unit Composition: Each unit consists of one common share and one-half of one common share purchase warrant.
• Warrant Terms (Investors): Each warrant entitles the holder to purchase one common share at an exercise price of $1.00. Warrants expire on March 10, 2029.
• Use of Proceeds: Advancement of the flagship Montauban project in Quebec, general working capital, and corporate purposes.
• Agent/Bookrunner: Red Cloud Securities Inc.
• Agent Compensation:
  • Cash fee: $406,531.
  • Warrants: 597,840 non-transferable common share purchase warrants.
  • Broker Warrant Terms: Exercisable into one common share at the offering price (C$0.68) on or before March 10, 2029.
  • Broker Warrant Hold Period: Expires on July 11, 2026, in accordance with applicable Canadian securities law.
• Regulatory Status: Issued pursuant to the listed issuer financing exemption under National Instrument 45-106. Securities are immediately freely tradable for Canadian purchasers. Closing remains subject to final approval of the Canadian Securities Exchange.