Deal's proceeds fund company's Karma Gold Project and Liguidi Project
By Devika Patel
Knoxville, Tenn., May 8 - True Gold Mining Inc. said it plans a C$10 million non-brokered private placement of stock with Teck Resources Ltd.
The company will sell 30,303,030 common shares at C$0.33 apiece, which is a 25% premium to the May 7 closing share price of C$0.28.
Upon settlement, Teck will become the company's largest shareholder with 32,053,030 shares, or about 15% of the company's outstanding stock.
Proceeds will be used for exploration at the Karma Gold Project and the Liguidi Project and general working capital purposes.
"Teck has been a long-term and supportive shareholder in our group of companies, including Fronteer Gold and Pilot Gold, and we welcome their new investment in True Gold," executive chairman Mark O'Dea said in a press release. "This financing will allow us to significantly ramp up our exploration efforts to demonstrate potential for resource growth at Karma and systematically test priority targets at Liguidi."
The gold exploration, development and production company is based in Vancouver, B.C.
| Issuer: | True Gold Mining Inc.
|
| Issue: | Common shares
|
| Amount: | C$10 million
|
| Shares: | 30,303,030
|
| Price: | C$0.33
|
| Warrants: | No
|
| Agent: | Non-brokered
|
| Investor: | Teck Resources Ltd.
|
| Pricing date: | May 8
|
| Stock symbol: | TSX Venture: TGM
|
| Stock price: | C$0.28 at close May 7
|
| Market capitalization: | C$48.9 million
|
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