The proceeds raised from the sale of FT Units will be used to incur “Canadian exploration expenses” that are “flow-through mining expenditures” on the Company’s Elk Gold Project in South Central British Columbia, Canada.
Each FT Unit consisted of one common share of the Company and one-half of one common share purchase warrant and entitle the holder to a renunciation of qualifying expenditures incurred by the Company in respect of the Elk Gold Project.
In connection with the Offering, the Underwriters received an aggregate cash fee equal to 6.0%, other than in connection with certain purchasers on a president’s list of Gold Mountain, in which a reduced fee of 3.0% was paid .
Officers and directors of the Corporation subscribed for a total of 60,500 HD Units, which constitute “related party transactions” within the meaning of Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions.
The securities described herein have not been, and will not be, registered under the United States Securities Act of 1933, as amended , or any state securities laws, and accordingly, may not be offered or sold within the United States except in compliance with the registration requirements of the U.S.
Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements.