Probe Gold completes $18M private placement
by CM Staff
The private placement will fund the Novador and Detour Gold projects.
TORONTO — Probe Gold has closed its previously announced bought-deal private placement.
The offering was completed through a syndicate of underwriters co-led by Beacon Securities and Canaccord Genuity, including BMO, CIBC, and SCP Resource Finance, for aggregate gross proceeds of $18,003,590, which includes the exercise of the underwriters’ option for additional gross proceeds of $3,000,800.
The company will allocate the gross proceeds from the sale of the flow-through shares to incur eligible “Canadian exploration expenses” that qualify as “flow-through mining expenditures” as defined in the Income Tax Act (Canada).
For Québec resident subscribers who are eligible individuals, these expenses will qualify for inclusion in the “exploration base relating to certain Québec surface mining or oil and gas exploration expenses” and the “exploration base relating to certain Québec exploration expenses” of the company, as defined in the Taxation Act (Québec). These expenses will be related to the company’s properties in Québec and incurred on or before December 31, 2025. All qualifying expenditures will be renounced in favour of the subscribers effective December 31, 2024.
The proceeds of the offering will be used for exploration and drilling at the company’s Novador Gold project and Detour Gold project, as well as for working capital. The offered securities issued pursuant to the offering are subject to a four-month hold period under applicable Canadian securities laws.
