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MONTREAL, Dec. 24, 2024 (GLOBE NEWSWIRE) -- Opus One Gold Corporation (OOR: TSXV) (“Opus One Gold” or the “Company”), is pleased to announce the closing of a non-brokered private placement of flow-through shares (“FT Shares”) and units of the Company (the “Units”) for aggregate gross proceeds of $1,495,750 (the “Offering”).
In total, the Company issued 25,104,545 FT Shares for gross proceeds of $1,380,750 at a price per FT Share of $0.055 and 2,300,000 Units for gross proceeds of $115,000 at a price per Unit of $0.05, with each Unit being comprised of one common share of the Company (a “Share”) and one common share purchase warrant (each a “Warrant”, and together, the “Warrants”), with each Warrant entitling the holder to acquire one common share (each a “Warrant Share”) at an exercise price of $0.10 per Share for a period of 36 months following the closing of the Offering. The gross amount raised from the issuance of FT Shares will be used by the Company for exploration on its mineral exploration properties and the net proceeds raised from the issuance of Units will be used for general working capital of the Company and payment of fees related to the Offering.
The FT Share and Units were offered by way of the “accredited investor” exemption under National Instrument 45-106 – Prospectus Exemptions in all the provinces of Canada. The Units, FT Shares, Shares, Warrants and Warrant Shares are subject to a four-month hold period in Canada following the closing of the Offering.
In aggregate, the Company paid 8% in cash finders fees and issued a total of 363,636 compensation warrants to arm’s length finders, with each such compensation warrant being exercisable for a period of 24 months following the closing at a price of $0.055 per Share.
Closing is subject to the approval of the TSX Venture Exchange and other customary closing conditions.
Related Party Transaction
Patrick Fernet, a director of the Company, acquired 600,000 FT Shares for total consideration of $33,000. Patrick Fernet is hereinafter referred to as the “Insider”.
The Insider is considered a “related party” and “insider” of the Company for the purposes of applicable securities laws and stock exchange rules. The subscription and issuance of FT Shares by the Insider constitutes a related party transaction but is exempt from the formal valuation and minority approval requirements of Regulation 61-101 - Protection of Minority Security Holders in Special Transactions as neither the fair market value of the common shares issued to the Insider, nor the consideration paid by such Insider, exceeds 25% of the Company’s market capitalization. The Insider abstained from voting on all matters relating to the Offering.