VANCOUVER,
BC, July 26, 2023 /CNW/ - Eminent Gold Corp.
("Eminent" or the "Company") (TSXV: EMNT) (OTCQB:
EMGDF) is pleased to announce, further to its news release dated
June 28, 2023, that it has closed the
initial tranche of its non-brokered private placement of units (the
"Offering"). The initial tranche consisted of 1,905,000
units of the Company (the "Subscription Units") at a
price of $0.32 per Subscription Unit
for gross proceeds of $609,600. Part
of the proceeds of this tranche of the Offering have been used to
complete property option payments, in the amount of $260,000, and the balance will be used for
working capital and exploration of the Company's Nevada mineral properties.
The Subscription Units and Settlement Units are
each comprised of one common share in the capital of the Company
(each a "Share") and one non-transferable Share purchase
warrant (each, a "Warrant"). Each whole Warrant will entitle
the holder to purchase one additional Share in the capital of the
Company (each, a "Warrant Share") for a period of 36 months
from the closing date at an exercise price of $0.50 per Warrant Share. After four months from
closing, if the closing price of the Shares is at a price equal to
or greater than $1.00 for a period of
ten consecutive trading days, the Company will have the right to
accelerate the expiry date of the Warrants by giving notice, via
news release, to the holder of the Warrants that the Warrants will
expire on the date that is 30 days after the issuance of said news
release.
The Company paid a total of $35,712 in finders' fees to arm's length finders
in connection with the Offering and issued 111,600 finders'
warrants with the same terms as described above.
In addition to the $609,600 first tranche, the Company has entered
into debt settlement agreements with certain creditors to settle an
aggregate of CAD$250,000 in debt (the
"Debt"). In settlement of the Debt, the Company will issue
781,250 units of the Company (the "Settlement Units") at a
deemed price of $0.32 per Unit (the
"Debt Settlement"). Closing of the Debt Settlement is
subject to the approval of the TSX Venture Exchange (the
"Exchange"). The funds previously received by the Company
from the Debt were allocated to working capital.
Michael Kosowan, a director of the Company,
participated in part of the Debt Settlement and will be issued
468,750 Settlement Units for gross proceeds of $150,000 (the "Insider Units"). The debt
settled was comprised of the principal amount of funds he advanced
to the Company in February 2023 for
general working capital. The Insider Units constitute a "related
party transaction" within the meaning of Multilateral Instrument
61-101 – Protection of Minority Security Holders in Special
Transactions ("MI 61-101"). The Company has relied on the
exemptions from the formal valuation and minority shareholder
approval requirements of MI 61-101 contained in Sections 5.5(a) and
5.7 (a), respectively, of MI 61-101 in respect of the Insider
Units. The participation by the non-arm's length individual in the
Debt Settlement was approved by the Company's disinterested members
of the board of directors.
All of the securities in connection with the
Offering and Debt Settlement are subject to a statutory hold period
of four months plus a day from the date of issuance in accordance
with the policies of the Exchange and applicable securities
legislation.
About Eminent
Eminent Gold is a gold exploration company
focused on creating shareholder value through the exploration and
discovery of world-class gold deposits in Nevada. Its multidisciplinary team has had
multiple successes in gold discoveries and brings expertise and new
ideas to the Great Basin. The Company's exploration assets in the
Great Basin include: Hot Springs Range Project, Weepah,
Gilbert South and Spanish Moon
District.
ON BEHALF OF THE BOARD
"Paul Sun"
CEO and Director
For further information on Eminent Gold Corp.,
please visit www.eminentgoldcorp.com
Neither TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
CAUTION REGARDING FORWARD-LOOKING
INFORMATION
Certain statements included in this news
release constitute forward-looking information or statements
(collectively, "forward-looking statements"), including those
identified by the expressions "anticipate", "assume" "believe",
"plan", "estimate", "expect", "intend", "may", "should", "will" and
similar expressions to the extent they relate to the Company or its
management. The forward-looking statements are not historical facts
but reflect current expectations regarding future results or
events. This news release contains forward looking statements.
These forward-looking statements are not guarantees of future
performance and involve risks, uncertainties and assumptions which
are difficult to predict. Such statements are based on current
expectations and various estimates, factors and assumptions and
involve known and unknown risks, uncertainties and other factors.
Such statements and information are based on numerous assumptions
regarding present and future business strategies and the
environment in which the Company will operate in the future. The
Company assumes no responsibility to update or revise
forward-looking information to reflect new events or circumstances
unless required by law. Readers should not place undue reliance on
the Company's forward-looking statements.
SOURCE Eminent Gold Corp.
