pcNewsWire – NewCastle Gold Ltd. (TSX: NCA) has entered into an agreement with a syndicate of underwriters co-led by Beacon Securities Limited, TD Securities Inc. and Canaccord Genuity Corp. for a bought deal of 15,800,000 common shares at $0.95 per share for gross proceeds of $15,010,000.
NewCastle Gold plans to use the net proceeds for exploration work at its Castle Mountain Project, working capital (including repayment of debt) and general corporate purposes.
News Release
NewCastle Gold Announces $15 Million Bought Deal Offering of Common Shares
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES
Toronto, Ontario, June 22, 2017 – NewCastle Gold Ltd. (NCA:TSX) (“NewCastle Gold” or the “Company”) is pleased to announce that it has entered into an agreement with a syndicate of underwriters co-led by Beacon Securities Limited, TD Securities Inc. and Canaccord Genuity Corp., pursuant to which they have agreed to purchase, on a bought deal basis, an aggregate of 15,800,000 common shares of NewCastle Gold at a price of $0.95 per common share, for aggregate gross proceeds to the Company of $15,010,000 (the “Offering”).
NewCastle Gold plans to use the net proceeds of the Offering for exploration work at its Castle Mountain Project, working capital (including repayment of debt) and general corporate purposes.
The common shares to be issued under the Offering will be offered by way of a short form prospectus in all of the provinces of Canada (excluding Quebec) and in the United States on a private placement basis pursuant to exemptions from the registration requirements of the United States Securities Act of 1933, as amended (the “U.S. Securities Act”).
The Offering is scheduled to close on or about July 13, 2017 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 Toronto Stock Exchange and applicable securities regulatory authorities.
The securities offered in the Offering have not been, and will not be, registered under the U.S. Securities Act or any U.S. state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, United States persons absent registration or any applicable exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws. This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
About NewCastle Gold
NewCastle Gold (an augustagroup company) has a 100% interest in the Castle Mountain property in San Bernardino County, California. The Castle Mountain heap leach gold mine produced over one million ounces of gold from 1992 to 2004. The Mine and Reclamation Plan, under which the mine operated, was authorized by the County of San Bernardino as the Lead Agency and remains in effect. Water for the drill programs was accessed from existing patented wells on the Project.
An updated NI 43-101 resource for the project was announced December 2, 2015 which includes Measured Mineral Resources of 17.4 million tonnes grading 0.86 g/t gold containing 0.48 million gold ounces, Indicated Mineral Resources of 202.5 million tonnes grading 0.57 g/t gold containing 3.71 million gold ounces along with Inferred Mineral Resources of 40.8 million tonnes grading 0.58 g/t gold and containing 0.76 million gold ounces. The Project hosts a disseminated low sulphidation epithermal system. Gold is primarily hosted by late-stage rhyolite volcanic units within zones of silicification and brecciation associated with northeast-southwest trending/southeast dipping fault structures which are interpreted to have developed within a collapsed caldera environment. Eleven gold domains are represented by both steep and shallow-dipping orientations.
For further information, please contact:
NewCastle Gold Ltd.
Gillian Roy
Manager, Investor Relations and Corporate Communications
Telephone: 437 993 4353
Email: groy@newcastlegold.ca
Neither the Toronto Stock Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Toronto Stock Exchange) accepts responsibility for the adequacy or accuracy of this news release.
