pcNewsWire – Plato Gold Corp. (TSX-V: PGC) intends to close a non-brokered private placement of up to $300,000 in convertible debentures.
Proceeds will be used for exploration work on the Good Hope Niobium Project near Marathon Ontario and for general working capital purposes.
News Release
Plato Gold Announces Private Placement of Convertible Debenture for up to $300,000
Toronto, June 1, 2017 – Plato Gold Corp. (TSX-V: PGC) (“Plato” or the “Company”), an exploration company with a portfolio of properties in Northern Ontario and Santa Cruz, Argentina is pleased to announce that it intends to undertake a non-brokered private placement (the “Offering”) of up to $300,000 in convertible debentures.
The convertible debentures carry interest at the rate of 10% per annum, payable annually. The maturity date of the convertible debentures is 36 months following the date of issue of the debentures. The convertible debentures are unsecured. The convertible debentures are convertible at the holder’s option at exercise price of $0.05 per common share in the first 12 months and $0.10 per common share thereafter until maturity. The Company may redeem all or any portion of the convertible debentures at any time prior to or on the maturity date.
The proceeds from the sale of the convertible debentures will be used by the Company for exploration work on the Good Hope Niobium Project near Marathon Ontario and for general working capital purposes.
Assuming completion of the maximum offering, there will be 149,591,655 common shares of the Company issued and outstanding if conversion in the first year and 146,591,655 common share of the Company issued and outstanding if conversion after the first year.
The offering is expected to close on or about June 22, 2017 or such other date or dates as the Company may determine in its discretion. Closing of the offering is subject to receipt of all required regulatory approvals, including approval of the TSX Venture Exchange.
The convertible debentures and the underlying securities, as applicable, will be subject to a statutory hold period of four months and one day from the date of issuance, in accordance with
applicable securities legislation.
About Plato Gold Corp.
Plato Gold Corp. is a Canadian exploration company listed on the TSX Venture Exchange with projects in Marathon Ontario, Timmins Ontario and Santa Cruz, Argentina.
The Good Hope Niobium Project consists of a total of 19 claims, 263 claim units and 4208 hectares in Killala Lake Area and Cairngorm Lake Area Townships, near Marathon Ontario. In May 2017, Plato signed an option agreement with Rudy Wahl and co-owners to acquire 100% interest in the Good Hope Property. A drill program is planned for 2017.
The Timmins Ontario project includes 4 properties: Guibord, Harker, Holloway and Marriott in the Harker/Holloway gold camp located east of Timmins, Ontario. In November 2010, Plato signed an agreement granting St Andrew Goldfields Ltd. the option to earn a 75% interest in the above properties. On January 26, 2016, St. Andrew Goldfields was acquired by Kirkland Lake Gold Inc.. The Holloway and Marriott options are now held by Kirkland Lake Gold Inc..
In July 2012, Plato sold a 50% interest in the Guibord property to Victory Gold Mines Inc. who amalgamated with Northern Gold Mining Inc. on February 6, 2013. On December 22, 2015, Oban Mining Corporation completed the acquisition of Northern Gold Mining. In June 2016, Oban changed its name to Osisko Mining Inc. (“Osisko”). Osisko now holds the 50% interest in the Guibord property.
In February 2013, Plato sold an 80% interest in the Harker property to Northern Gold Mining Inc. and was subsequently acquired by Oban Mining Corporation on December 22, 2015. In June 2016, Oban changed its name to Osisko Mining Inc.. Osisko now holds the 80% interest in the Harker property.
In Argentina, Plato owns a 75% interest in Winnipeg Minerals S.A. (“WMSA”), an Argentina incorporated company. The Lolita Property, held by WMSA, is comprised of a number of contiguous mineral rights totaling 9,672 hectares. Work has advanced on this exploration property to the point that it is drill-ready or ready to be optioned to a partner.
For additional company information, please visit: www.platogold.com.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OF THIS RELEASE.
For further information, please contact:
Anthony Cohen
President and CEO
Plato Gold Corp.
T: 416-968-0608
F: 416-968-3339
info@platogold.com
www.platogold.com
