Gold79 Closes Second Tranche of Upsized Private Placement for Gross Proceeds of $5.5 Million
Summary
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OR FOR DISSEMINATION TO U.S NEWS WIRE SERVICESNovember 18, 2024 Gold79 Mines Ltd. (TSX-V:AUU) (OTCQB:AUSVF) (Gold79 or the Company) is pleased to announce the closing of a second tranche of its previously announced $6,000,000 non-brokered private placement financing (the Offering), raising gross proceeds in the first and second tranche of $5,500,000 through the issuance of 22,000,002 units at $0.25 per unit.This financing has been an excellent opportunity for key investors to acquire meaningful positions as we resume drilling at Gold Chain and advance the project towards a maiden resource, stated Quentin Mai, President of Gold79. The board of directors of the Company, with participating directors abstaining, determined that the transaction is exempt from the formal valuation and minority shareholder approval requirements contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101 for the related party transaction, as neither the fair market value of securities issued to the insiders nor the consideration paid by the insiders exceeded 25 percent of the Companys market capitalization. The Company did not file a material change report with respect to the transaction 21 days in advance of the closing of the private placement because insider participation had not been confirmed. As a result of the second tranche closing of the private placement, Mr. Macphersons and joint actors ownership of the issued and outstanding common shares of the Company decreased from 6.3% to 4.5% on an undiluted basis. We caution readers of this news release not to place undue reliance on our forward-looking statements as a number of factors could cause actual results or conditions to differ materially from current expectations.