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Mining industry

International Wayside Gold Mines Ltd. Announces Private Placement Offering

Strategic Insights

— 1 min read

International Wayside Gold Mines Ltd. has engaged Octagon Capital Corporation to conduct a private placement offering of up to $3,000,000 of flow-through common shares and $7,500,000 of non-flow-through common shares. The gross proceeds from the sale of flow-through shares will be used for exploration on the Cariboo Gold Project, while the net proceeds from the sale of non-flow-through shares will be allocated towards final payment to Mosquito Consolidated Gold Mines Limited, payment of reclamation bonds, and general working capital purposes.

Key Takeaways:

  • The private placement offering will raise up to $3,000,000 in flow-through common shares and $7,500,000 in non-flow-through common shares.
  • Gross proceeds from the sale of flow-through shares will be used for exploration on the Cariboo Gold Project.
  • Net proceeds from the sale of non-flow-through shares will be used for final payment to Mosquito Consolidated Gold Mines Limited, payment of reclamation bonds, and general working capital purposes.
  • Octagon Capital Corporation will receive a cash commission of 8% of the aggregate gross proceeds of the offering.
  • The Company's 100% optioned property, The Cariboo Gold Project, encompasses 574.8 km2 and is located near Barkerville Historic Town in central British Columbia.
  • Recorded production from the Cariboo Gold Camp is 3.8 million ounces of gold, including 2.6 million ounces from placer mining and 1.2 million ounces from lode mining.

Statistics:

  • Up to $3,000,000 in flow-through common shares will be sold at $0.25 per share.
  • Up to $7,500,000 in non-flow-through common shares will be sold at an unspecified price.
  • The gross proceeds from the sale of flow-through shares are expected to be used entirely for exploration on the Cariboo Gold Project.
  • The net proceeds from the sale of non-flow-through shares will be allocated as follows:

+ Final payment to Mosquito Consolidated Gold Mines Limited: $3,500,000 minimum, up to $7,500,000 maximum

+ Payment of reclamation bonds: $3,500,000 minimum, up to $7,500,000 maximum

+ General working capital purposes: remaining net proceeds

Sources:

  • CCNMatthews. Copyright (C) 2006 CCNMatthews. All rights reserved.
  • International Wayside Gold Mines Ltd. NEWS RELEASE #06-42.

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