/NOT FOR DISTRIBUTION TO UNITED
STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN
THE UNITED STATES/
MONTREAL, March 16, 2017 /CNW Telbec/ - ALGOLD
RESOURCES LTD. (TSXV: ALG – the "Corporation") is pleased to
announce that in conjunction with its previously-announced bought
deal offering (the "Bought Deal Offering") of units of the
Corporation (the "Bought Deal Units"), it intends to complete a
concurrent non-brokered private placement (the "Concurrent
Offering", and together with the Bought Deal Offering, the
"Offering") of units of the Corporation (the "Concurrent Units",
and together with the Bought Deal Units, the "Units") conducted on
the same terms as the Bought Deal Offering for additional gross
proceeds of $500,000. In aggregate,
the Corporation will issue a total of 34,500,000 Units under the
Offering at a price of $0.20 per Unit
(the "Issue Price") for aggregate gross proceeds to the Corporation
of $6,900,000. Of that amount, a
total of $6,400,000 (representing
32,000,000 Units) is being raised under the Bought Deal Offering
through Beacon Securities Limited ("Beacon") and a syndicate of
underwriters (the "Underwriters"). The remaining $500,000 (representing 2,500,000 Units) is being
raised under the Concurrent Offering.
Each Unit will consist of one common share in the capital of the
Corporation (a "Common Share") and one-half 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.
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 $7,500,000.
The closing of the Offering is expected to occur on or about
March 24, 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 on the Corporation's Tijirit property 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.