Firstgold Corp. (OTCBB: FGOC) today announced it has completed a private placement of $1.1 million U.S. convertible debenture with a private investor, bearing 10 percent interest for the duration of 20 months. The private placement is convertible into common shares of the company at 80 cents per share.
The company will also issue the investor warrants to purchase $1.1 million of Firstgold’s common stock, exercisable at $1 per share up to 30 months from closing. The private placement will assist the company in its efforts to trade on the Toronto Stock Exchange.
“A condition precedent of Firstgold receiving a listing on the TSX was that Firstgold obtain long term capital funding of $9 million net of commissions. With the closing of this transaction for $1.1 million in conjunction with warrant exercise we have raised the $1.2 million we identified in our last press release as being required in addition to the previously announced and closed equity financing of $8.5 million,” Steve Akerfeldt, CEO of the Firstgold, stated in the press release.
He continued, “This total of $9.7 million dollars minus commissions means we have now achieved the funding target as established by the TSX. With this now in place we expect to proceed with completion of the listing process.”
Firstgold currently leases more than 30,000 acres of exploration property in Nevada, as well as 965 acres at its principal project, Relief Canyon, which recently reinstated its Plan of Operation to include its commencement of extensive drilling and development analysis on the project.
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