HALIFAX, NOVA SCOTIA–(Marketwired – May 16, 2016) –
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR RELEASE, PUBLICATION, DISTRIBUTION OR DISSEMINATION DIRECTLY, OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES.
GoGold Resources Inc. (“GoGold” or the “Company”) (TSX:GGD) is pleased to announce that it has entered into an agreement with Cantor Fitzgerald Canada Corporation and BMO Capital Markets pursuant to which they have agreed to purchase, on a bought deal basis, 7,700,000 units of the Company (the “Units”) at a price of C$1.30 per Unit, for gross proceeds to the Company of approximately C$10,000,000 (the “Offering”).
The Company will also grant to the Underwriters an over-allotment option (the “Over-Allotment Option”) to increase the size of the Offering by up to an additional 15%, such option being exercisable in whole or in part at any time prior to 30 days after the closing of the Offering. Each Unit will consist of one common share and one-half of one common share purchase warrant. Each whole warrant shall entitle the holder to acquire an additional common share at a price of C$1.70 during the period ending 24 months following the closing of the Offering.