Agoracom Blog

Manitou Gold $ Announces Closing of $5,031,000 Private Placement, Strategic Investments by Alamos Gold and O3 Mining $ $ $ $

Posted by AGORACOM at 3:28 PM on Friday, April 9th, 2021

Manitou Gold Inc. (TSXV: MTU) (the “Company” or “Manitou”) is pleased to announce that it has closed its previously announced private placement (the “Offering”) pursuant to which it has issued an aggregate of 45,740,909 “flow-through” common shares (“FT Shares”) at a price of $0.11 per FT Share to raise aggregate gross proceeds of $5,031,500.

The Company also issued an aggregate of 1,381,864 broker warrants to certain eligible registrants assisting in the Offering, each entitling the holder to acquire one common share of the Company at a purchase price of $0.11 per share for a period of three years from the closing of the Offering.

An amount equal to the gross proceeds from the sale of the FT Shares will be used for expenditures which qualify as Canadian exploration expenses (“CEE”) and “flow-through mining expenditures” (within the meaning of the Income Tax Act (Canada)). The Company will renounce such CEE with an effective date of no later than December 31, 2021.

In connection with the Offering, Alamos Gold Inc. (TSX: AGI, NYSE: AGI) purchased an aggregate of 15,900,000 FT Shares from a third party to maintain its 19.9% interest in the Company (calculated on a partially diluted basis).  In addition, O3 Mining Inc. (TSX-V: OIII) participated in the Offering, as a result of which, it owns a 9.9% interest in the Company (calculated on a partially diluted basis).

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