Gladiator Closes $9M Initial Tranche of Private Placement
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Vancouver, British Columbia--(Newsfile Corp. - June 25, 2024) - Gladiator Metals Corp. (TSXV: GLAD) (OTCQB: GDTRF) (FSE: ZX7) ("Gladiator" or the "Company") is pleased to announce it has closed a first tranche its non-brokered private placement raising gross proceeds of C$9,115,504 (the "Offering").
The Offering consisted of the issuance of 12,643,450 Charity Flow-Through common shares (the "Charity FT Shares") at a price of C$0.61 per Charity FT Share and 3,507,500 Non-Flow-Through common shares (the "NFT Shares") at a price of C$0.40 per NFT Share.
Gladiator intends to use the proceeds of the Offering to fund its continued exploration program at its Whitehorse Copper Project in the Yukon including diamond drilling for:
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"continued diamond drilling of advanced prospects Cowley Park and Chief's Trend with the intention of establishing a maiden initial inferred resource" and
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"new exploration drilling at potential high-grade copper targets along the Whitehorse Copper Belt defined from historical drilling and aeromagnetic surveying"
In connection with the closing the Company cash paid finders' fees totaling C$158,280. The securities issued under the Offering are subject to a hold period under applicable securities laws in Canada expiring four months and one day from June 24, 2024 and are subject to certain closing conditions including, but not limited to, the receipt of all necessary approvals including the final approval of the TSX Venture Exchange.
The Charity FT Shares will qualify as "flow-through shares" (within the meaning of subsection 66(15) of the Income Tax Act (Canada) (the "Tax Act")). An amount equal to the gross proceeds from the issuance of the Charity FT Shares will be used to incur eligible resource exploration expenses which will qualify as (i) "Canadian exploration expenses" (as defined in the Tax Act), and (ii) as "flow-through critical mineral mining expenditures" (as defined in subsection 127(9) of the Tax Act) (collectively, the "Qualifying Expenditures"). Qualifying Expenditures in an aggregate amount not less than the gross proceeds raised from the issue of the Charity FT Shares will be incurred (or deemed to be incurred) by the Company on or before December 31, 2025, and will be renounced by the Company to the initial purchasers of the Charity FT Shares with an effective date no later than December 31, 2024.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.