GoldON Closes Oversubscribed Financing to Fund Phase II Drilling Underway at West Madsen Gold Projec
Victoria, British Columbia–(Newsfile Corp. – December 2, 2020) – GoldON Resources Ltd. (TSXV: GLD) (“GoldON” or the “Company”) is pleased to announce that, further to its previously announced non-brokered private placement of $1,000,000 in flow-through shares (see news release of November 23, 2020), it has closed the oversubscribed financing placing 1,808,133 flow-through shares at a price of $0.75 per share to raise gross proceeds of $1,356,100.
The Company paid finders’ fee totalling $72,141 and 96,188 warrants exercisable at $0.75 per share until December 2, 2022 to Accilent Capital Management Inc., Canaccord Genuity Corp., EMD Financial Inc., Leede Jones Gable Inc. and Mine Equities Ltd. in respect of the offering. All securities issued pursuant to this offering are subject to a four-month hold period and may not be traded until at least April 3, 2021, except as permitted by applicable securities legislation and the TSX Venture Exchange.
The Company will use the proceeds of the financing to fund the Phase II drilling program underway at its West Madsen Project in the heart of the Red Lake Gold Camp.
The West Madsen Project covers over 4,700 hectares and is comprised of the West Madsen (Block A and B) claims, where GoldON has the right to earn a 100% interest through an option agreement with Great Bear Resources (see news release of May 28, 2019); and the Flat Lake and Madsen-Medicine Stone claim groups that adjoin Block A, where GoldON can acquire a 100% interest through an option agreement with Bounty Gold.
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