Getchell Gold to Raise $3 Million via Financing and Debenture Conversion Option

Getchell Gold (GTCH.CN) on Friday announced a private placement of units at $0.20 apiece for $3 million in proceeds which includes a $1.2 million order from the lead investor, Myrmikan Gold Fund. Getchell Gold intends to use the proceeds of the offering to spearhead the 2025 exploration program at the Fondaway Canyon gold project.

Each unit will be comprised of one common share of the company and one-half of one common share purchase warrant and each whole warrant will be exercisable into one common share of Getchell Gold at $0.30 per share for a period of three years from the date of issuance.

The company is also offering to convert its outstanding debentures and accrued interest in exchange for units, on the same terms as the offering. Getchell Gold will issue an additional 25-million units if all debenture holders agreed to convert their debentures. The debenture conversion option will remain open until closing of the offering, expected on or before Friday, June 6.

The company had issued 2.1 million warrants expiring on June 15, and 319,000 warrants expiring on July 14, exercisable into common shares at $0.35 per share, pursuant to the first and second tranche private placement of units that closed on June 15, 2023 and July 14, 2023. Getchell proposes to extend the expiry dates of an aggregate of 2.5 million outstanding share purchase warrants by an additional 12 months, such that the June warrants will expire on June 15, 2026 and the July warrants will expire on July 14, 2026.

Shares of the company closed up 7.5% to $0.215 on Thursday on the Canadian Securities Exchange.