Contact Gold Completes $18.5 Million Financing Including a Strategic Investment from Goldcorp
Contact Gold has completed an $18,500,000 private placement of subscription receipts, with proceeds to be used to fund the acquisition and exploration of properties situated on Nevada’s Carlin Trend (the “Carlin Trend Properties”) from Waterton Global Resource Management, which will become a 37% shareholder of Contact.
The Carlin Trend Properties are characterized as large strategic land positions located on Nevada’s Carlin and Independence gold trends, with extensive exploration databases comprising geochemistry, geophysics and drilling, including approximately 500 drill holes completed across the portfolio. Contact Gold is led by a seasoned management team and board of directors with extensive exploration and capital markets expertise including Matthew Lennox-King, John Dorward, Andrew Farncomb, George Salamis and Mark Wellings.
Goldcorp has purchased $7,500,000 of subscription receipts in the offering. Proceeds held in escrow will be released upon satisfaction of all conditions precedent to the proposed arrangement, at which time each receipt will be exchanged for one common share, with the effect that Goldcorp will own a 15% interest in Contact Gold. The company is expected to begin trading on the TSX Venture in early June.
Fort Capital acted as placement agent to Contact Gold in the private placement to Goldcorp.