/NOT FOR DISTRIBUTION TO UNITED
STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN
THE UNITED STATES/
MONTREAL, March 24, 2017 /CNW Telbec/ - ALGOLD
RESOURCES LTD. (TSXV: ALG – the "Corporation") is pleased to
announce that it has raised aggregate gross proceeds of
$7.5 million by issuing a total of
37,500,000 units (each, a "Unit") at a price of $0.20 per Unit (the "Issue Price") under its
previously-announced "bought deal" private placement offering of
Units (the "Bought Deal Offering") and concurrent non-brokered
private placement offering of Units (the "Concurrent Offering", and
together with the Bought Deal Offering, the "Offering"). A total of
$7.0 million (representing 35,000,000
Units, including 3,000,000 Units issued as a result of the full
exercise of the Underwriters' option) was raised under the Bought
Deal Offering through a syndicate of underwriters led by Beacon
Securities Limited and including Paradigm Capital Inc.
(collectively, the "Underwriters"). The remaining $500,000 (representing 2,500,000 Units) was
raised under the Concurrent Offering.
Each Unit consists of one common share in the capital of the
Corporation (each a "Common Share") and one-half of one common
share purchase warrant (each whole common share purchase warrant, a
"Warrant") of the Corporation. Each Warrant entitles the holder
thereof to acquire one Common Share at a price of $0.30 for a period of 24 months from the closing
of the Offering. The Warrants may be accelerated by the
Corporation, at its sole option, at any time in the event that the
closing volume-weighted average price of the Common Shares on the
TSX Venture Exchange, or such other exchange on which the Common
Shares may primarily trade from time to time, is greater than or
equal to $0.45 for a period of 20
consecutive trading days occurring no earlier than four months and
one day from the closing of the Offering by giving notice to the
holders thereof.
The Offering remains subject to receipt of the approval of the
TSX Venture Exchange. The Units, including all underlying
securities thereof, are subject to a hold period of four months and
one day from their date of issuance under applicable Canadian
securities laws.
In addition, securities issued to subscribers in the United States will be subject to a hold
period under the United States Securities Act of 1933 (the "U.S.
Securities Act") and can only be resold in strict compliance with
the applicable exemptions from the registration requirements of the
U.S. Securities Act.
The Corporation paid to the Underwriters an aggregate cash
commission of $312,880 and issued to
the Underwriters an aggregate of 1,564,400 compensation options,
each exercisable into one Common Share of the Corporation at the
Issue Price for a period of 24 months from the closing date of the
Bought Deal Offering.
The net proceeds from the Offering will be used to carry out
exploration drilling on the Corporation's Tijirit property and for
working capital and general corporate purposes.
The securities offered have not been, and will not be,
registered under the U.S. Securities Act or any U.S. state
securities laws, and may not be offered or sold in the United States or to, or for the account or
benefit of, United States persons
absent registration or any applicable exemption from the
registration requirements of the U.S. Securities Act and applicable
U.S. state securities laws. This press release does not constitute
an offer to sell or the solicitation of an offer to buy securities
in the United States, nor in any
other jurisdiction.
ABOUT ALGOLD
Algold Resources Ltd. is focused on the exploration and
development of gold deposits in West
Africa. The board of directors and management team are
seasoned resource industry professionals with extensive experience
in the exploration and development of world-class gold projects in
Africa.
CAUTIONARY LANGUAGE REGARDING FORWARD-LOOKING
INFORMATION
This news release contains and refers to forward-looking
information based on current expectations. All other statements
other than statements of historical fact included in this release
are forward looking statements (or forward-looking information).
The Corporation's plans involve various estimates and assumptions
and its business is subject to various risks and uncertainties. For
more details on these estimates, assumptions, risks and
uncertainties, see the Corporation's most recent Management
Discussion and Analysis on file with the Canadian provincial
securities regulatory authorities on SEDAR at www.sedar.com. These
forward looking statements are made as of the date hereof and there
can be no assurance that such statements will prove to be accurate,
such statements are subject to significant risks and uncertainties,
and actual results and future events could differ materially from
those anticipated in such statements. Accordingly, readers should
not place undue reliance on forward-looking statements that are
included herein, except in accordance with applicable securities
laws.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
SOURCE Algold Resources Ltd.