/NOT FOR DISTRIBUTION TO UNITED
STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN
THE UNITED STATES/
MONTREAL, March 8, 2017 /CNW/ - ALGOLD RESOURCES
LTD. (TSXV: ALG – the "Corporation") is pleased to announce
that it has entered into an agreement with Beacon Securities
Limited ("Beacon"), as lead underwriter, on its own behalf
and on behalf of a syndicate of underwriters (collectively, the
"Underwriters"), pursuant to which the Underwriters shall
purchase 20,000,000 units (the "Units") in the capital of
the Corporation on a bought deal basis at a price of $0.20 per Unit (the "Issue Price") for
aggregate gross proceeds to the Corporation of $4,000,000 (the "Offering").
Each Unit will consist of one common share in the capital of the
Corporation (a "Common Share") and one half (1/2) of one
common share purchase warrant (each whole common share purchase
warrant, a "Warrant") of the Corporation. Each Warrant will
entitle the holder thereof to acquire one Common Share at a price
of $0.30 for a period of 24 months
from the Closing Date (as defined below). The Warrants may be
accelerated by the Corporation, at its sole option, at any time in
the event that the closing volume-weighted average price of the
Common Shares on the TSX Venture Exchange, or such other exchange
on which the Common Shares may primarily trade from time to time,
is greater than or equal to $0.45 for
a period of 20 consecutive trading days occurring no earlier than
four months and one day from the Closing Date by giving notice to
the holders thereof.
In addition, the Corporation has granted the Underwriters an
option (the "Underwriters' Option"), exercisable, in whole
or in part by Beacon, on behalf of the Underwriters, giving notice
to the Corporation at any time up to 48 hours prior to the Closing
Date to sell up to an additional 3,000,000 Units at the Issue Price
for additional gross proceeds of up to $600,000. In the event the Underwriters' Option
is exercised in full, the aggregate gross proceeds to the
Corporation will be $4,600,000.
The closing of the Offering is expected to occur on or about
March 30, 2017 (the "Closing
Date") and is subject to the completion of formal documentation
and receipt of regulatory approval, including the approval of the
TSX Venture Exchange. All securities issued in connection with the
Offering will be subject to a four month hold period.
The net proceeds from the Offering will be used to carry out
exploration drilling at the Company's mineral properties and for
working capital and general corporate purposes.
The Units to be issued under the Offering will be offered by way
of a private placement in all of the provinces of Canada and may be offered 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 securities offered 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 does not constitute
an offer to sell or the solicitation of an offer to buy securities
in the United States, nor in any
other jurisdiction.
ABOUT ALGOLD
Algold Resources Ltd. is focused on the exploration and
development of gold deposits in West
Africa. The board of directors and management team are
seasoned resource industry professionals with extensive experience
in the exploration and development of world-class gold projects in
Africa.
CAUTIONARY LANGUAGE REGARDING FORWARD-LOOKING
INFORMATION
This news release contains and refers to forward-looking
information based on current expectations. All other statements
other than statements of historical fact included in this release
are forward looking statements (or forward-looking information).
The Corporation's plans involve various estimates and assumptions
and its business is subject to various risks and uncertainties. For
more details on these estimates, assumptions, risks and
uncertainties, see the Corporation's most recent Annual Information
Form and most recent Management Discussion and Analysis on file
with the Canadian provincial securities regulatory authorities on
SEDAR at www.sedar.com. These forward looking statements are made
as of the date hereof and there can be no assurance that such
statements will prove to be accurate, such statements are subject
to significant risks and uncertainties, and actual results and
future events could differ materially from those anticipated in
such statements. Accordingly, readers should not place undue
reliance on forward-looking statements that are included herein,
except in accordance with applicable securities laws.
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.
SOURCE Algold Resources Ltd.