Gemdale Gold closes $2.4M investment from Eldorado

Executive Summary

• Eldorado Gold Corp. completed a $2.4 million strategic investment in Gemdale Gold Inc. via a non‑brokered private placement of 2 million units at $1.20 per unit.
• Each unit includes one common share and half of a warrant; warrants allow purchase of additional shares at $1.50 for 24 months.
• Proceeds will be used to advance Gemdale’s exploration projects in Finland and for general corporate purposes, and Eldorado obtained customary investor rights (participation, ROFR, technical committee seat).

Key Details

• Offering Structure: 2 million units @ $1.20 per unit → gross proceeds of $2.4 M.
• Unit Composition: 1 common share + ½ warrant per unit.
• Warrant Terms: Right to purchase one additional common share at $1.50, exercisable for 24 months from issuance.
• Use of Proceeds: Advance exploration properties in Finland; general corporate purposes.
• Investor Rights Agreement (IRA): Grants Eldorado:
• Participation rights in future equity financings,
• Right of first refusal on certain project‑level dispositions,
• Seat on Gemdale’s technical committee (subject to customary conditions).
• Ownership Impact: Post‑investment Eldorado holds ~9.5 % of outstanding common shares on a non‑diluted basis and ~13.6 % on a partially diluted basis (assuming full warrant exercise).
• Regulatory Conditions: Closing subject to TSX Venture Exchange approval; securities subject to statutory hold period of 4 months + 1 day.
• Early Warning Disclosure: Eldorado’s prior ownership was zero; now controls the stated share and warrant amounts. No current plans that trigger early‑warning clauses (Item 5, Form 62‑103F1).

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 Assessment: Material – Positive (significant financing that funds exploration activities and introduces a strategic partner).