In This Article:
Vancouver, British Columbia--(Newsfile Corp. - February 4, 2025) - Forge Resources Corp. (CSE: FRG) (OTCQB: FRGGF) (FSE: 5YZ0) ("FRG" or the "Company") is pleased to announce the closing of its significantly oversubscribed non-brokered private placement (the "Private Placement"). Further to its press release on January 24, 2025 and on receipt of CSE approval, the company will issue an aggregate of 6,591,995 units (the "Units") at a price of $0.55 per Unit for aggregate gross proceeds of $3,625,597.25 (the "Offering"). This amount surpassed the company's previously announced target of $2,500,000.
Each Unit consists of one Common Share of the Company (a "Common Share") and one Common Share purchase warrant (a "Warrant"). Each Warrant entitles the holder to purchase one Common Share of the Company (a "Warrant Share") for a period of 5 years following the issuance thereof at an exercise price of $0.70 per Warrant Share. Upon closing of the Offering, the Company paid finders fees to three finders. To the first, a cash commission of $22,000 and 40,000 warrants exercisable for a period of 5 years from the closing of the Private Placement at an exercise price equal to the offering price (the "Finders Warrants). To the second, 27,564 shares and 27,564 Finders Warrants. To the third, 36,364 shares and 36,364 Finders Warrants. All securities issued are subject to a statutory holder period of four months and one day from the date of issuance.
PJ Murphy, the CEO of the Company participated in the Private Placement purchasing a total of 909,090 Units for a total price of approximately $500,000, representing 13.8% of the Units issued.
PJ Murphy, CEO of Forge Resources States: "We are delighted to announce the successful completion of our latest financing, which was oversubscribed beyond our expectations. This incredible support from our investors is a testament to the confidence they have in our vision and strategy. With these funds, we are poised to complete our proposed deal with Aion Mining Corp., as well as support our ongoing operational expenses. This marks a significant milestone for our company and underscores our commitment to creating value for our shareholders and partners. The future is bright, and we are excited to embark on this next phase of growth together."
The Company plans to use the proceeds to bring its total interest in Aion Mining Corp up to 60% in order to further the development of the La Estrella Project, and towards option payments on the Alotta Project and for general working capital.