Mining
Friday, January 19th, 2024 4:54 pm EDT
Key Points
- Strategic Investment by AngloGold Ashanti (AGA): G2 Goldfields Inc. has successfully closed a strategic investment by AngloGold Ashanti PLC (AGA), involving the issuance of 24.5 million common shares of G2 Goldfields at a price of 90 cents per share. The aggregate gross proceeds from this investment amount to $22.05 million. The net proceeds are earmarked for advancing exploration activities at G2’s Oko project in Guyana, along with utilization for working capital and general corporate purposes.
- Investor Rights Agreement: As part of the strategic investment, G2 Goldfields and AGA entered into an investor rights agreement. Within this agreement, AGA was granted pre-emptive and top-up rights for potential future security issuances by G2, enhancing AGA’s involvement in G2’s strategic decisions.
- Finders and Private Placement Details: Roth Canada, Inc. and Cormark Securities Inc. acted as finders in connection with the strategic investment and received a cash commission equivalent to 6% of the aggregate gross proceeds. The common shares were privately placed with AGA in the United States, utilizing exemptions from registration requirements under the United States Securities Act of 1933 and Canadian securities laws. The shares are subject to a four-month hold period in accordance with Canadian securities laws. The final acceptance of the strategic investment by the TSX Venture Exchange is pending. G2 Goldfields aims to leverage the expertise of its team, which has been directly involved in significant gold discoveries in Guyana, to advance exploration and development initiatives, particularly focusing on the Oko property. The Oko property has shown promising mineral resource estimates, with significant gold content near the surface and open down plunge.
G2 Goldfields Inc. has closed the previously announced strategic investment by AngloGold Ashanti PLC (AGA) of 24.5 million common shares of the company at a price of 90 cents per share for aggregate gross proceeds of $22.05-million. The net proceeds from the Strategic Investment are expected to be used to advance exploration activities at the Company’s Oko project in Guyana and for working capital and general corporate purposes.
In connection with the Strategic Investment, the Company and AGA entered into an investor rights agreement pursuant to which AGA was granted pre-emptive and top-up rights for future security issuances by G2.
Roth Canada, Inc. and Cormark Securities Inc. acted as finders in connection with the Strategic Investment and were paid a cash commission equal to 6% of the aggregate gross proceeds of the Strategic Investment.
The Shares were sold on a private placement basis to AGA in the United States pursuant to one or more exemptions from the registration requirements of the United States Securities Act of 1933, as amended (the “1933 Act”) and pursuant to one or more exemptions from the prospectus requirements under Canadian securities laws. The Shares are subject to a four-month hold period in accordance with Canadian securities laws.
The Strategic Investment is subject to the final acceptance of the TSX Venture Exchange (“TSXV”).
About G2 Goldfields Inc.
The G2 Goldfields team is comprised of professionals who have been directly responsible for the discovery of millions of ounces of gold in Guyana as well as the financing and development of the Aurora Gold Mine, Guyana’s largest gold mine. G2 announced its maiden mineral resource estimate on the newly discovered Oko property in Guyana (see press release dated April 25, 2022), and has filed on SEDAR+ an independent technical report entitled “NI 43-101 Technical Report and Mineral Resource Estimate for the Oko Gold Property, Cooperative Republic of Guyana, South America”, with an effective date of April 14, 2022. Highlights of the report include:
974,000 oz. Au – Inferred Mineral Resource contained within 3,274,000 tonnes @ 9.25 g/t Au; and
220,000 oz. Au – Indicated Mineral Resource contained within 793,000 tonnes @ 8.63 g/t Au.
Significantly, all of the maiden mineral resources lies within 350 meters of surface and remains open down plunge. The Oko district has been a prolific alluvial goldfield since its initial discovery in the 1870’s, and modern exploration techniques continue to reveal the considerable potential of the district.
All scientific and technical information in this news release has been reviewed and approved by Dan Noone (CEO of G2 Goldfields Inc.), a “qualified person” within the meaning of National Instrument 43-101. Mr. Noone (B.Sc. Geology, MBA) is a Member of the Australian Institute of Geoscientists.
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