UrbanGold Announces a Private Placement with Palisades Goldcorp
Ottawa, Ontario--(Newsfile Corp. - August 26, 2020) - UrbanGold Minerals Inc. (TSXV: UGM) ("UrbanGold" or the "Company") is pleased to announce a non-brokered private placement (the "Private Placement") for $1,000,000 with Palisades Goldcorp Ltd. ("Palisades").
The Private Placement consists of the sale of 4,166,667 units of the Company (the "Units") priced at $0.24 per Unit resulting in gross proceeds of $1,000,000. The Units will be comprised of one (1) common share of the Company ("Common Share") and one (1) Common Share purchase warrant ("Warrant"). Each Warrant entitles the holder thereof to purchase one Common Share for $0.36 expiring 36 months from the date of the closing of the Private Placement.
The closing of the Private Placement is anticipated to occur on or about September 9, 2020 or such later date as may be agreed upon by the parties.
The Company will use the proceeds for working capital purposes. There will be no commission payable on the Private Placement.
Completion of the Private Placement is subject to regulatory approval including, but not limited to, the approval of the TSX Venture Exchange. The Common Shares, and Warrants issued will be subject to a four month hold period from the date of the closing of the Private Placement.
About Palisades Goldcorp
Palisades Goldcorp is Canada's new resource focused merchant bank. Palisades' management team has a demonstrated track record of making money and is backed by many of the industry's most notable financiers. With junior resource equities valued at generational lows, management believes the sector is on the cusp of a major bull market move. Palisades is positioning itself with significant stakes in undervalued companies and assets with the goal of generating superior returns.
UrbanGold Minerals Inc. is a precious metals exploration company with its activities focused in key gold prospective areas of Quebec. The Company specializes in project generation supported by substantial exploration expertise. The Company's common shares trade on the TSX Venture Exchange under the symbol "UGM".
This news release may contain certain forward-looking information and statements, including without limitation, the closing of the Private Placement, statements pertaining to the use of proceeds, and the Company's ability to obtain necessary approvals from the TSX Venture Exchange. All statements included herein, other than statements of historical fact, are forward-looking information and such information involves various risks and uncertainties. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. A description of assumptions used to develop such forward-looking information and a description of risk factors that may cause actual results to differ materially from forward-looking information can be found in UrbanGold's disclosure documents on the SEDAR website at www.sedar.com. UrbanGold does not undertake to update any forward-looking information except in accordance with applicable securities laws.
For further information
Mathieu Stephens, P.Geo
President and Chief Executive Officer
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.
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