Allegiant Gold closes $10.5-million private placement

Executive Summary

• Allegiant Gold Ltd. closed a $10.5 million non‑brokered private placement led by Kinross Gold, issuing 21 million units at C$0.50 each.
• The financing increases Kinross’s equity stake to 9.9 % (partially diluted) and provides Allegiant with over C$13 million of capital for its Eastside project.
• Units consist of one common share plus half a warrant (exercise price C$0.70, 18‑month term); all securities are subject to statutory, exchange and voluntary hold periods through Jan 6 2026 (statutory) and an additional 12‑month voluntary hold.

Key Details

• Offering Structure: 21 million units @ C$0.50 per unit = C$10.5 M gross proceeds.
• Unit Composition: 1 common share + ½ common share purchase warrant (exercise price C$0.70, exercisable for 18 months).
• Hold Periods:
• Statutory hold – 4 months post‑closing.
• Exchange hold – expires Jan 6 2026.
• Voluntary hold – 12 months from closing date.
• Accelerated Expiry Clause: If TSX‑V share price ≥ C$1.00 for any 10‑day period after four months + 1 day, warrants expire 30 days after notice of acceleration.
• Kinross Ownership: Increased to 9.9 % on a partially diluted basis.
• Use of Proceeds (multiyear Eastside plan):
• Comprehensive geophysics & mapping over the full 90‑km property.
• Up to 20,000 m of RC and diamond core drilling targeting high‑grade zones and resource expansion.
• Exploration of additional targets identified by geophysical work.
• Advancement toward technical/economic milestones.
• General working capital.
• Finder’s Fees Paid: $89,600 cash + 1,072,393 common shares + 590,796 non‑transferable finders’ warrants (exercise price C$0.70, expiry March 6 2027).
• Insider Participation: Insiders subscribed for 97,300 units, grossing $48,650; treated as a related‑party transaction under MI 61‑101.
• Closing Conditions: Subject to final exchange approval.

Notable Quotes

“We are proud to announce the successful closing of this financing… Their renewed commitment and increased equity position to 9.9 % is a strong endorsement of our Eastside project.” – Peter Gianulis, CEO

“With more than $13 million of capital at our disposal, we can now accelerate our exploration timeline and increase the size and quality of our gold and silver resources over the next 18 months.” – Peter Gianulis, CEO