/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICE OR FOR
DISSEMINATION IN THE UNITED
STATES/
VANCOUVER, April 16, 2018 /CNW/ - David H. Brett,
President & CEO, EnGold Mines Ltd., (TSX-V: EGM, "EnGold" or
the "Company") is pleased to announce that the Company has engaged
Canaccord Genuity Corp. (the "Agent") to act as agent to offer for
sale, on a commercially reasonable efforts basis: 10,000,000
flow-through units of the Company ("Flow-Through Units") at a price
of $0.30 per Flow-Through Unit; and
2,000,000 non-flow-through units of the Company ("Common Units") at
a price of $0.26 per Common Unit, to
raise aggregate gross proceeds of up to approximately $3,520,000 (the "Offering").
Each Flow-Through Unit shall consist of one flow-through common
share and one transferable non-flow-through common share purchase
warrant (a "Flow-Through Unit Warrant") exercisable into one
additional non-flow-through common share of the Company for a
period of 24 months from closing, subject to an exercise
acceleration trigger, at an exercise price of $0.40. Each Common Unit shall consist of one
non-flow-through common share and one transferable non-flow-through
common share purchase warrant (a "Common Unit Warrant") exercisable
into one additional non-flow-through common share of the Company
for a period of 24 months from closing, subject to an exercise
acceleration trigger, at an exercise price of $0.35.
In addition, the Company has granted the Agent an over-allotment
option (the "Over-Allotment Option"), exercisable in whole or in
part at any time up to two days prior to closing of the Offering,
to sell up to an additional 1,500,000 Flow-Through Units and
300,000 Common Units on the same terms as the Offering. The Company
has agreed pay the Agent a cash commission of 7.0% of the gross
proceeds of the Offering, including proceeds received from the
exercise of the Over Allotment Option. Further, the Company will
issue on the closing of the Offering to the Agent compensation
warrants entitling the Agent to purchase that number of common
shares that is equal to 7.0% of the aggregate number of
Flow-Through Units and Common Units issued by the Company under the
Offering (including upon exercise of the Over-Allotment Option),
exercisable at prices of $0.40 per
common share and $0.35 per common
share respectively, for a period of 24 months, subject to an
exercise acceleration trigger, from the Closing Date.
If at any time during the term of the Common Unit Warrants or
the Flow-Through Unit Warrants (collectively referred to as
"Warrants"), and after the date that is four months after the
Closing Date, the closing price of the common shares of the Company
on the TSX Venture Exchange is equal to or greater than
$1.00 per share over a period of 30
consecutive trading days, then the Company has the right to
accelerate the expiration of the Warrants by issuing a news release
disclosing that the Warrants will expire unless exercised within
thirty days.
The gross proceeds from the sale of the Flow-Through Units will
be used to continue exploration of the Company's 100% owned Lac La
Hache Copper, Gold, Silver property in the Cariboo region of BC,
and the proceeds from the sale of the Units will be applied to the
expenses of the Offering and for general working capital.
The closing of the Offering is anticipated to occur on or around
May 14, 2018 (the "Closing Date") and
is subject to certain conditions including, but not limited to, the
receipt of all necessary regulatory approvals, including the
acceptance of the TSX Venture Exchange.
The FT Units and Units will be offered by way of a private
placement pursuant to exemptions from the prospectus requirements
to residents of the Provinces of British
Columbia, Alberta,
Ontario and such other Canadian
jurisdictions as may be agreed to by the Company and the
Agent. All securities issued under the Offering will be
subject to a statutory hold period in Canada expiring four months and one day from
the Closing Date.
This news release does not constitute an offer to sell or a
solicitation of an offer to buy any of the securities in
the United States. The securities
have not been and will not be registered under the United States
Securities Act of 1933, as amended (the "U.S. Securities Act") or
any state securities laws and may not be offered or sold within
the United States or to U.S.
Persons unless registered under the U.S. Securities Act and
applicable state securities laws or an exemption from such
registration is available.
About EnGold
EnGold (www.engold.ca) is focused on exploring its 100% owned
mineral property located near the town of Lac La Hache in BC's prolific Cariboo mining
region. EnGold's corporate philosophy rests on three interdependent
pillars: Environment, Engagement and Gold. Through sound
environmental stewardship, commitment to transparent engagement
with local communities, the Company is dedicated to driving
exceptional shareholder and stakeholder value by discovering and
developing mineral resources.
Engold Mines Ltd.
Per/
David Brett, MBA
President & CEO
Forward Looking Statements: The information in this news
release contains forward looking statements that are subject to a
number of known and unknown risks, uncertainties and other factors
that may cause actual results to differ materially from those
anticipated in our forward looking statements. Factors that could
cause such differences include: changes in world commodity markets,
equity markets, costs and supply of materials relevant to the
mining industry, change in government and changes to regulations
affecting the mining industry. Forward-looking statements in this
release include statements regarding plans to raise financing for
operations, future exploration programs and operation plans.
Although we believe the expectations reflected in our forward
looking statements are reasonable, results may vary, and we cannot
guarantee future results, levels of activity, performance or
achievements. EnGold disclaims any obligations to update or revise
any forward looking statements whether as a result of new
information, future events or otherwise, except as may be required
by applicable law.
Neither the 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.
SOURCE Engold Mines Ltd.