January 29, 2021, ‑ Vancouver, British Columbia. Blackrock Gold Corp. (“Blackrock” or the “Company”) (TSXV: BRC) is pleased to announce that due to significant demand, the Company has increased the gross proceeds of the previously announced bought-deal public offering (the “Offering”) from C$7,020,000 to C$9,000,000. Under the revised Offering, the Underwriters have agreed to purchase for resale 12,500,000 units of the Company (the “Units”) at a price of C$0.72 per Unit (the “Unit Price”) on a “bought deal” basis. Each Unit shall be comprised of one common share in the capital of the Company (each a “Common Share”) and one half of one Common Share purchase warrant (each a “Warrant”). Each whole Warrant shall be exercisable into one Common Share at a price of C$1.10 at any time on or before the date which is 36 months after the closing date of the Offering. The revised Offering is being led by Red Cloud Securities Inc. as lead underwriter and sole bookrunner on behalf of a syndicate of underwriters (collectively, the “Underwriters”).
As part of the revised agreement, the Company has granted the Underwriters an option, to cover over-allotments and for market stabilization purposes, to purchase up to 1,875,000 additional Units at the Unit Price to raise additional gross proceeds of up to C$1,350,000 (the “Over-Allotment Option”). The Over-Allotment Option will be exercisable in whole or in part, at any time for a period of 30 days from and including the closing date of the Offering. In the event that the over-allotment option is exercised in full, the aggregate gross proceeds of the revised Offering will be C$10,350,000.
The Units will be offered and sold by way of a short form prospectus to be filed in all of the provinces of Canada, with the exception of Quebec, and will be offered and sold elsewhere outside of Canada on a private placement basis. The net proceeds raised from the Offering will be used to fund the exploration of the Company’s Tonopah West and Silver Cloud properties in Nevada and for working capital and general corporate purposes. The Offering is scheduled to close on or about February 19, 2021 and is subject to certain conditions, including, but not limited to, the receipt of all necessary regulatory and other approvals, including the approval of the listing of the Common Shares issued pursuant to the sale of Units and the exercise of Warrants on the TSX Venture Exchange (the “TSXV”).
This press release shall not constitute an offer to sell or the solicitation of an offer to buy the Units, nor shall there be any sale of the Units in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction. The Units being offered will not be, and have not been, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, a U.S. person.
About Blackrock Gold Corp.
Blackrock is a junior gold-focused exploration company that is on a quest to make an economic discovery. Anchored by a seasoned board, the Company is focused on its Nevada portfolio consisting of low-sulfidation epithermal gold & silver projects located along on the established Northern Nevada Rift in north-central Nevada, and the Walker Lane trend in western Nevada.
For further information, please contact:
Andrew Pollard, President & CEO
Blackrock Gold Corp.
Phone: 604 817-6044
This news release contains “forward‑looking statements” within the meaning of Canadian securities legislation. Such forward‑looking statements concern the net proceeds from the Offering and the intended use of proceeds. Such forward‑looking statements or information are based on a number of assumptions, which may prove to be incorrect. Assumptions have been made regarding, among other things: conditions in general economic and financial markets; exploration costs, timing and amount of exploration expenditures; and effects of regulation by governmental agencies. The actual results could differ materially from those anticipated in these forward‑looking statements as a result of risk factors including: the availability of funds; the timing and content of work programs; results of exploration activities of mineral properties; the interpretation of drilling results and other geological data; and general market and industry conditions. Forward‑looking statements are based on the expectations and opinions of the Company’s management on the date the statements are made. The assumptions used in the preparation of such statements, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date the statements were made. The Company undertakes no obligation to update or revise any forward‑looking statements included in this news release if these beliefs, estimates and opinions or other circumstances should change, except as otherwise required by applicable law.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.