Newcore Gold has announced the closure of its bought deal public offering of 16,700,000 common shares of the company at a price of C$0.30 per share for aggregate gross proceeds to the Company of approximately C$5.0 million.

The company noted that post-offering, it accumulated 138.1 million shares issued and outstanding, with Management and the Board of Directors owning a 24% equity interest. This development shows that the company is on course to be well-positioned and to continue unlocking the value of the Enchi Gold Project.

Luke Alexander, President and CEO of Newcore said:

“We are delighted to be welcoming a new institutional investor and would also like to thank our existing shareholders for their continued support. Select insiders also participated in the financing, with Management and the Board of Directors continuing to be strongly aligned with shareholders by way of an approximate 24% equity ownership post financing.

“This funding allows Newcore to continue to advance our Enchi Gold Project on the back of a successful 90,000 metre drill program that has outlined not only potential resource growth at existing deposits, along strike and at depth, but also identified new discoveries from first pass drilling on early-stage targets, highlighting the district scale potential of the property.”
Luke Alexander, President and CEO

Newcore Gold intends to use the net proceeds from the Offering to fund its ambitious plan of exploration and development expenditures at the Company’s Enchi Gold Project in southwest Ghana as well as for working capital and general corporate purposes.

The Offering was led by Stifel GMP as lead underwriter and sole bookrunner on behalf of a syndicate of underwriters that included Cormark Securities Inc., Canaccord Genuity Corp., Haywood Securities Inc., Raymond James Ltd., and Sprott Capital Partners.

In connection with the Offering, the Underwriters received a cash commission of 6 per cent of the gross proceeds of the Offering, reduced to 3 per cent for proceeds raised from sales to one institutional investor which accounted for gross proceeds of approximately C$1.75 million.

Shares Offered by Prospectus

The shares issued under the Offering were offered by way of a prospectus supplement to the company’s base shelf prospectus dated March 9, 2021. The Prospectus Supplement was filed in in each of the provinces and territories of Canada, excluding Québec.

Apart from new investors buying the shares of the company, certain directors and management of the Company purchased an aggregate of 283,327 Shares pursuant to the Offering, the company’s press statement revealed.

Participation by insiders in the Offering was considered a pursuant to Multilateral Instrument 61-101- Protection of Minority Security Holders in Special Transactions as the Insiders are directors or senior officers of the Company.

The Company was exempted from the requirements to obtain a formal valuation or minority shareholder approval in connection with the Insiders’ participation in the Offering in reliance.

“The Shares sold in the Offering have not been, and will not be, registered under the United States Securities Act of 1933, as amended, or under any securities laws of any state of the United States.

“[Likewise], the shares were not offered or sold, directly or indirectly, or delivered within the United States… except in certain transactions exempt from the registration requirements of the U.S. Securities Act and any applicable securities laws of any state of the United States.”
Press Release