2022-06-10 05:42:44

TORONTO, ON / ACCESSWIRE / June 10, 2022 / Signal Gold Inc. (“Signal Gold” or the “Company”) (TSX:SGNL) (OTCQX:SGNLF) is pleased to announce that it has completed the private placement announced on May 18, 2022 and later upsized on June 2, 2022 (the “Offering”). Pursuant to the Offering, the Company issued 3,652,375 flow-through units of the Company (the “FT Units”) at a price of $0.56 per FT Unit, and 8,070,298 units of the Company (the “Units”) at a price of $0.49 per Unit. Each FT Unit consisted of one common share issued as a “flow-through share” as defined in subsection 66 (15) of the Income Tax Act (Canada) and one-half of one common share purchase warrant issued on a non-flow-through basis (each whole common share purchase warrant, a “Warrant”). Each Unit consisted of one common share and one-half of one Warrant. Each Warrant entitles the holder thereof to purchase one common share of the Company (a “Warrant Share”) at a price of $0.74 until June 9, 2025. The Warrants contain an acceleration clause whereby, after the expiration of the statutory hold period, if the common shares of the Company trade at a volume weighted average price of $1.24 or more for 10 consecutive trading days, the Company will have the right to accelerate the exercise period to a period ending at least 30 days from the date that notice of such acceleration is provided to the holders of the Warrants.

“Despite a very challenging market for the industry, we were pleased to see significant institutional interest for the Company’s private placement financing even beyond the upsized amount, demonstrating the strong interest in Signal Gold’s continued growth potential. With the financing now completed, the Company is well positioned to further enhance the value of its assets going forward, especially at our Goldboro Gold Project.”

~Kevin Bullock, President and CEO, Signal Gold Inc.

The gross proceeds from the Offering will be used primarily to advance activities for development and exploration at the Goldboro Gold Project in Nova Scotia and for working capital and general corporate purposes.

Each of the Units and FT Units issued under the Offering is subject to a hold period under Canadian law that will expire on October 10, 2022. The Offering remains subject to final approval of the Toronto Stock Exchange.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities to be offered have not been and will not be registered under the United States Securities Act of 1933, as amended, U.S. Securities Act or under any U.S. state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons, absent registration, or an applicable exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws.


Signal Gold is a TSX and OTCQX-listed gold mining, development, and exploration company, focused in the top-tier Canadian mining jurisdictions of Nova Scotia and Newfoundland. The Company is advancing the Goldboro Gold Project in Nova Scotia, a significant growth project subject to a positive Feasibility Study (Please see the ‘NI 43-101 Technical Report and Feasibility Study for the Goldboro Gold Project, Eastern Goldfields District, Nova Scotia’ on January 11, 2022, for further details). Signal Gold also operates mining and milling operations in the prolific Baie Verte Mining District of Newfoundland which includes the fully permitted Pine Cove Mill, tailings facility and deep-water port, as well as ~15,000 hectares of highly prospective mineral property, including those adjacent to the past producing, high-grade Nugget Pond Mine at its Tilt Cove Gold Project.


This news release contains “forward-looking information” within the meaning of applicable Canadian and United States securities legislation. Forward-looking information includes, bit is not limited to, information with respect to the Offering, the use of proceeds and the final TSX acceptance of the Offering. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “expects”, or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, or “does not anticipate”, or “believes” or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might”, or “will be taken”, “occur”, or “be achieved”. Forward-looking information is based on the opinions and estimates of management at the date the information is made, and is based on a number of assumptions and is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Signal Gold to be materially different from those expressed or implied by such forward-looking information, including risks associated with the exploration, development and mining such as economic factors as they effect exploration, future commodity prices, changes in foreign exchange and interest rates, actual results of current production, development and exploration activities, government regulation, political or economic developments, environmental risks, permitting timelines, capital expenditures, operating or technical difficulties in connection with development activities, employee relations, the speculative nature of gold exploration and development, including the risks of diminishing quantities of grades of resources, contests over title to properties, and changes in project parameters as plans continue to be refined as well as those risk factors discussed in Signal Gold’s annual information form for the year ended December 31, 2021, available on www.sedar.com. Although Signal Gold has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Signal Gold does not undertake to update any forward-looking information, except in accordance with applicable securities laws.


Signal Gold Inc.
Kevin Bullock
President and CEO
(647) 388-1842
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Reseau ProMarket Inc.
Dany Cenac Robert
Investor Relations
(514) 722-2276 x456
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