Viva Gold closes $4.18-million private placement

Executive Summary

• Viva Gold Corp. has closed an oversubscribed non-brokered private placement, raising gross proceeds of $4,183,273.
• The company issued 26,145,456 units at a price of $0.16 per unit, with proceeds allocated primarily to prefeasibility/feasibility studies and drilling at the Tonopah gold project.
• Insiders participated significantly in the offering, acquiring over 6.4 million units, while finders received cash fees and warrants.

Key Details

• Transaction Structure: Non-brokered private placement completed.
• Units Issued: 26,145,456 units.
• Price: $0.16 per unit.
• Gross Proceeds: $4,183,273.
• Unit Composition: Each unit consists of one common share and one-half of one non-transferable common share purchase warrant.
• Warrant Terms: Each whole warrant is exercisable to acquire one share at an exercise price of $0.24 per share. Warrants expire on December 29, 2028 (36 months from issuance).
• Insider Participation: Insiders acquired 6,490,956 units. This constituted a related party transaction exempt from formal valuation and minority shareholder approval requirements under Multilateral Instrument 61-101, as the value did not exceed 25% of market capitalization.
• Use of Proceeds:
  • Primary: Prefeasibility/feasibility study work at the Tonopah gold project (technical and environmental studies).
  • Secondary: Geophysical survey and other geologic work, including drilling at Tonopah.
  • Tertiary: General working capital purposes.
• Finder’s Fees:
  • Cash: $84,154 paid to Canaccord Genuity Corp., Research Capital Corp., Red Cloud Securities Inc., and Haywood Securities Inc.
  • Warrants: 525,962 non-transferable share purchase warrants issued to finders.
  • Finder Warrant Terms: Exercisable at $0.24 per share, expiring December 29, 2028.
• Regulatory Status: Subject to final approval of the TSX Venture Exchange.
• Hold Period: Securities are subject to a statutory hold period of four months and one day from the date of issuance.

Notable Quotes

• "The strong support shown in this financing by both Viva's existing and new shareholders is a vote of confidence in the future of the Tonopah gold project. These funds will allow the company to move aggressively into prefeasibility/feasibility study work and ultimately into permitting, a major catalyst for Nevada mining projects." — James Hesketh, President and CEO