Getchell Gold Corp. Announces $1,000,000 Financing and Engages Red Cloud Financial Services
Toronto, Ontario--(Newsfile Corp. - September 14, 2020) - Getchell Gold Corp. (CSE: GTCH) (OTCQB: GGLDF) ("Getchell" or the "Company") a leading Nevada focused Gold and Copper exploration company is pleased to announce an offering on a non-brokered private placement basis of up to 2,500,000 units (each a "Unit") at a price of $0.40 per Unit, for gross proceeds of up to $1,000,000 (the "Private Placement"), and that it has entered into a corporate services agreement with Red Cloud Financial Services Inc. ("Red Cloud").
"The financing will strengthen the Company's financial position, provide Getchell the critical ability to pursue its exploration and corporate objectives, and underpin future growth potential," states Mike Sieb, President of Getchell Gold Corp., and, "We anticipate Red Cloud's engagement, at this formative juncture in the Company's development, will expand the Company's network and range of capital opportunities, and facilitate that growth."
Each Unit will consist of one common share of the Company and one-half of one common share purchase warrant. Each whole warrant will entitle the holder to acquire one additional common share of the Company at a price of $0.60 per share for a period of two years from the date of closing. The Private Placement may include closing in tranches and multiple closing dates.
The Private Placement will include an up to 25% over-allotment option, exercisable by the Company, which equates to an additional 625,000 Units and $250,000 (the "Greenshoe"). If the Greenshoe is fully exercised, the total proceeds of the Private Placement will be an aggregate of 3,125,000 Units and gross proceeds of $1,250,000.
The proceeds from the Private Placement will be used for exploration of properties and general working capital. In connection with the Private Placement, the Company may pay finder's fees.
Closing of the Private Placement is subject to receipt of all necessary corporate and regulatory approvals, including approval of the Canadian Securities Exchange. The securities issued pursuant to the Private Placement will be subject to a statutory hold period in accordance with applicable securities laws.
The securities offered have not been and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirements.
Red Cloud Services Agreement
The Company reports that it has retained Red Cloud, a Toronto-based resource-focused financial services platform which offers clients an extensive array of corporate access services including marketing, media, and online support.
The Agreement with Red Cloud is for an initial six-month period until February 17, 2021 ("Initial Period") and automatically renews month-to-month thereafter. Under the engagement, the Company will issue 180,300 shares in consideration for the Initial Period and Red Cloud will be paid a fee of $10,000 per month for services it will render to the Company subsequent to the Initial Period. The shares issued under the initial engagement will be subject to a four-month and one day hold period from the date of grant.
About Getchell Gold Corp.
The Company is a Nevada focused gold and copper exploration company trading on the (CSE: GTCH) and (OTCQB: GGLDF). Getchell Gold is primarily directing its efforts on its most advanced stage asset, Fondaway Canyon, a past gold producer with a significant in-the-ground historic resource estimate. Complementing Getchell's asset portfolio is Dixie Comstock, a past gold producer with a historic resource and two earlier stage exploration projects, Star Point and Hot Springs Peak. Getchell has the option to acquire 100% of the Fondaway Canyon and Dixie Comstock properties, Churchill County, Nevada.
The Company reiterates that its near-term strategy to advance its assets is not impacted by the COVID-19 Corona virus. The Company continues to monitor the situation and is in compliance with all government guidelines.
Mr. William Wagener, Chairman & CEO
Getchell Gold Corp.
+1 303 517 8764
The Canadian Securities Exchange has not reviewed this press release and does not accept responsibility for the adequacy or accuracy of this news release. Not for distribution to U.S. news wire services or dissemination in the United States.
Certain information contained herein constitutes "forward-looking information" under Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to the private placement and the completion thereof and the use of proceeds. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "will" or variations of such words and phrases or statements that certain actions, events or results "will" occur. Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made and they are subject to known and unknown risks, uncertainties and other factors that may cause the actual results to be materially different from those expressed or implied by such forward-looking statements or forward-looking information, including: the receipt of all necessary regulatory approvals, use of proceeds from the financing, capital expenditures and other costs, and financing and additional capital requirements. Although management of Getchell have attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as 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 and forward-looking information. The Company will not update any forward-looking statements or forward-looking information that are incorporated by reference herein, except as required by applicable securities laws.
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