Vancouver, British Columbia – Providence Gold Mines Inc. (the “Company” or “Providence Gold”) is pleased to announce that it has arranged a non-brokered private placement of up to $1,200,000 (the “Financing”) through the issuance of up to 8,000,000 units (the “Units”) at a price of $0.15 per Unit. Each Unit will be comprised of one common share and one-half of one common share purchase warrant (“Warrant”), with each whole Warrant entitling the holder to purchase one common share of Providence Gold at a price of $0.25 per share for a period of 2 years.
The Company may pay finders’ fees equal to 7% in cash and 10% in warrants for subscriptions as may be attributable to such finders. Finders’ warrants issued to registered dealers or exempt market dealers will be valid for a period of two years, with each warrant exercisable into one common share of the Company at a price of $0.25 per share.
The net proceeds of the private placement will be budgeted as follows:
- $ 1,000,000 for exploration and drilling of up to 3050 meters of HG core drilling as recommended in the recently-filed NI 43-101 report dated February 12, 2018 on the Providence Gold Mines property located near Sonora, California (see news release dated February 12, 2018). The program is designed to test zones near surface and to depth and along strike to delineate new high grade shoots within the historical past producing Providence group of gold mines which were shut down during profitable mining in 1916; and
- The balance for working capital and general corporate purposes.
There is no material fact or material change about the Company that has not been generally disclosed.
The Financing is subject to Exchange acceptance.
ON BEHALF OF THE BOARD
Ronald Coombes, President & CEO
FOR FURTHER INFORMATION PLEASE CONTACT:
Robert Eadie: (604) 602-4935
Or Ronald Coombes: (604) 724-2369
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.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION: This news release includes certain “forward-looking statements” under applicable Canadian securities legislation. Forward-looking statements include, but are not limited to, statements with respect to: the terms and conditions of the proposed Transaction; the terms and conditions of the proposed Financing; future work to be carried on the Property; use of funds; and the business and operations of Red Hut after the proposed transaction. 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. There is no assurance any of the forward-looking statements will be completed as described herein, or at all. Such factors include, but are not limited to: general business, economic, competitive, political and social uncertainties; operating and technical difficulties in connection with mineral exploration and development activities, lack of investor interest in the Financing; requirements for additional capital; future prices of gold and precious metals; changes in general economic conditions; accidents, delays or the failure to receive board, shareholder or regulatory approvals, including the required permits; results of current exploration and testing; changes in laws, regulations and policies affecting mining operations; and title disputes. 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. Red Hut disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.