Eldorado Gold Closes $2.4 Million Strategic Investment in Gemdale Gold

Executive Summary

• Gemdale Gold Inc. closed a strategic private placement with Eldorado Gold Corp., issuing 2,000,000 units at C$1.20 each for total gross proceeds of C$2.4 million.
• Each unit includes one common share and half a warrant; the warrants allow purchase of additional shares at C$1.50 for 24 months.
• Proceeds will be used to advance Gemdale’s exploration projects in Finland and for general corporate purposes.

Key Details

• Units Issued: 2,000,000 units @ C$1.20 per unit → C$2,400,000 gross proceeds.
• Unit Composition: 1 common share + ½ warrant (each whole warrant gives the holder the right to buy one additional common share at C$1.50).
• Warrant Terms: Exercise price C$1.50; exercisable for 24 months from issuance; no finder's fees or commissions paid.
• Use of Proceeds: Advance exploration properties in Finland and general corporate purposes.
• Investor Rights Agreement (IRA): Grants Eldorado participation rights in future equity financings, a right of first refusal on certain project‑level dispositions, and the right to appoint a representative to Gemdale’s technical committee.
• Ownership Impact: Post‑offering Eldorado holds 2,000,000 common shares and 100,0 00,000 warrants (~9.5% non‑diluted, ~13.6% partially diluted assuming full warrant exercise).
• Regulatory Conditions: Closing subject to required approvals, including TSX Venture Exchange; securities subject to a statutory hold period of four months and one day.
• Early Warning Disclosure: Eldorado’s acquisition does not trigger any material change‑of‑control concerns under Item 5 of Form 62‑103F1; early warning report filed per MI 62‑104.

Notable Quotes

“We are pleased to welcome Eldorado as a new shareholder and strategic partner. Their investment supports the continued advancement of our exploration portfolio in Finland, and we value the technical depth and operational experience they bring as we move into the next phase of growth for the Company.” – Dr. Toby Strauss, President & CEO, Gemdale Gold

Materiality: Material – Positive (significant financing that provides capital for ongoing exploration activities).