1911 Gold Closes C$13.2 Million "Bought Deal" Life Offering Including Increased Investment by Eric Sprott
VANCOUVER, British Columbia, July 17, 2025 (GLOBE NEWSWIRE) -- 1911 Gold Corporation ("1911 Gold" or the "Company") (TSXV:AUMB, FRA: 2KY)) is pleased to announce that it has completed its previously announced "bought deal" LIFE offering (the "Offering") for gross proceeds of C$13,225,232.30, including the exercise in full of the Underwriters' Option (as defined in the press release dated June 24, 2025). The Offering consisted of the sale of: (i) 3,750,000 common shares of the Company (the "Non-FT Shares") at a price of C$0.20 per Non-FT Share; (ii) 2,924,000 common shares (the "Tranche 1 CEE Shares") at a price of C$0.342 per Tranche 1 CEE Share; (iii) 31,163,633 common shares (the "Tranche 2 CEE Shares" and together with the Tranche 1 CEE Shares, the "CEE Offered Shares") at a price of C$0.288 per Tranche 2 CEE Share; and (iv) 10,163,000 common shares (the "CDE Offered Shares" and, together with the Non-FT Shares and CEE Offered Shares, the "Offered Shares") at a price of C$0.246 per CDE Offered Share. The CEE Offered Shares and CDE Offered Shares will qualify as "flow-through shares" (within the meaning of subsection 66(15) of the Income Tax Act (Canada) (the "Tax Act")).
Shaun Heinrichs, President and CEO of 1911 Gold, commented, "We're extremely pleased with the overwhelming interest in this financing, which was significantly oversubscribed. Notably, Mr. Eric Sprott increased his participation and led the financing with a commitment well above his pro rata share. This additional capital positions us well to ramp up exploration and advance key development activities at the True North underground mine, in preparation for a potential restart of operations."
Eric Sprott, through 2176423 Ontario Ltd., a corporation beneficially owned by him, acquired 9,288,734 common shares pursuant to the Offering for total consideration of $1,857,746.80. Prior to the Offering, Mr. Sprott beneficially owned or controlled 33,333,334 common shares of the Company representing approximately 16.7% on a non-diluted basis. As a result of the Offering, Mr. Sprott now beneficially owns or controls 42,622,068 common shares representing approximately 17.2% on a non-diluted basis. The securities are held for investment purposes. Mr. Sprott has a long-term view of the investment and may acquire additional securities including on the open market or through private acquisitions or sell the securities including on the open market or through private dispositions in the future depending on market conditions, reformulation of plans and/or other relevant factors. A copy of the early warning report with respect to the foregoing will appear on 1911 Gold's profile on SEDAR+ at www.sedarplus.ca and may also be obtained by calling Mr. Sprott's office at (416) 945-3294 (2176423 Ontario Ltd., 7 King Street East, Suite 1106, Toronto Ontario M5C 3C5).
The Offering was conducted on a "bought deal" basis led by Haywood Securities Inc. ("Haywood") as lead underwriter and sole bookrunner, and including Velocity Trade Capital Ltd. (together with Haywood, the "Underwriters").
For 2,924,000 CEE Offered Shares, the Company, pursuant to the provisions in the Tax Act shall use an amount equal to the gross proceeds of the sale of such CEE Offered Shares to incur eligible "Canadian exploration expenses" that qualify as both "flow-through mining expenditures" (as defined in the Tax Act) and "flow-through mining expenditures" as defined in subsection 11.7(1) of the Income Tax Act (Manitoba) for purposes of the Manitoba Mineral Exploration Tax Credit. Such expenditures shall be incurred after the Closing Date and prior to December 31, 2026 in the aggregate amount of not less than the total amount of the gross proceeds raised from the issue of such CEE Offered Shares. The Company shall renounce the qualifying expenditures so incurred to the purchasers of such CEE Offered Shares effective on or before December 31, 2025.
For 2,777,778 CEE Offered Shares, the Company, pursuant to the provisions in the Tax Act shall use an amount equal to the gross proceeds of the sale of such CEE Offered Shares to incur eligible "Canadian exploration expenses", after the Closing Date and prior to October 31, 2025 in the aggregate amount of not less than ...
