Chivas Gold Announces a Rights Issue of Approximately 56.7 Million Euros, Underwritten to 80% via Subscription Undertakings and Underwriting Commitments
The Board of Directors of Chivas Gold ("Chivas Gold" or "the Company"), (IWW:CIC) a wholly owned subsidiary of Chivas Land Ltd, decided on 1st of August 2016, with authorization from the IW World Exchange on July 27th, 2016, to issue new shares with preferential rights for shareholders in Chivas Gold.
Stockholm, Sweden, September 16, 2016 (Newswire.com) - The Rights Issue is underwritten to 80 percent via subscription undertakings and underwriting commitments. The funds will mainly be used for financing a part of the development of the British Columbia-project towards start of gold production.
Summary
A rights issue of shares with preferential rights for shareholders in Chivas Gold. Shareholders will receive one (1) subscription right for each, on the record date, owned share. Subscription rights entitle the holder to subscribe for one (1) new share in Chivas Gold. Each new ordinary share shall have the same rights as currently issued shares in the Company. The subscription price in the Rights Issue is Eur 2.1 per share, which represents issue proceeds of approximately EUR 56.7 million (before transaction costs). The subscription period will run from and including September 2016 up until and including October 2016. Shareholders, who are not using their subscription rights to subscribe in the Rights issue, will experience a dilution of totally 15 percent, assuming full subscription of shares.
Background and reasons for the Rights Issue:
Chivas Gold is a gold exploration company operating in Yukon Territory in British Columbia, which is one of the most gold rich areas in the world. The claim stretches along 650 meters of creek frontage on both sides of the creek.
- Road accessible and mostly underlain by crown land, camp onsite.
- 68,300 grams of gold have been mined at an average fineness of 861.5.
- Commodities: Gold, Silver, Zinc, Copper
- Deposit Types I01: Au-quartz veins
- Part of the same placer gravel distribution as McDame and Snow Creeks.
- The underlying bedrock units also host gold.
- The placer operation featured on the TV Series " Season 1 of Yukon Gold", Snow Creek, is 4.6 km southeast.
- It covers an area of 33.08 hectares / 81.74 acres.
- Estimated reserves are 270,000 tons grading 7.2 to 8.6 grams of gold per ton
The property is located 95 km. north of the community of Dease Lake, British Columbia. It can be reached from Dease Lake, via Stewart-Cassiar Highway 37. The property also offers placer rights to loose materials (mineralized boulders) related to the underlying stockwork of the past producing Gold Mine in which it covers.
Chivas Gold’s strategy is to create value by identifying and acquiring high potential gold projects, prospect and explore them until they reach the stage of being ready to be sold for cash or further developed in cooperation with a partner.
Financial advisor
Aktiv Management Nor is acting as financial advisor in the Rights Issue. This is a translation of the Swedish version. In case of any discrepancy between the English and the Swedish version, the Swedish version shall take precedence. This information is information that Chivas Gold is obliged to make public pursuant to the EU Market Abuse Regulation.
Chivas Gold, listed at IW World Exchange (IWW:CIC) is a gold exploration and production company operating in one of the most gold rich areas in the world; British Columbia, Canada, close to Yukon Territory in Alaska, The mine is located within the Sylvester Allochthon, which is composed of Devonian-Triassic volcanic, sedimentary and ultramafic rocks. The allochthon is composed of discrete lithotectonic packages, and was initially divided into an upper and lower thrust sheet in an adjacent map sheet (Gordey et al., 1982), but has recently been divided into three divisions (Nelson et al., Fieldwork, 1987).
The allochthon is locally bounded by the Cassiar batholith to the west and overlies Paleozoic platformal rocks to the east. The geology around the Creek mine is composed of massive to pillowed andesite to basalt flows, which belong to Gordey's "Lower Assemblage" or the "Division II" of Nelson. These "greenstones" are Mississippian to Permian in age and part of the Upper Paleozoic Slide Mountain Complex. The mine was developed on five levels from 1981 to 1988, obtaining ore from at least 6 different veins, with an average grade of 6 to 7 grams per ton gold.
Estimated reserves are 270,000 tons grading 7.2 to 8.6 grams per ton gold (Information Circular 1993-13, page 17)
IMPORTANT INFORMATION
The information in this press release does not constitute an offer to acquire, subscribe for or otherwise trade in shares, subscription rights or other securities in Chivas Gold. This press release may not be released, published or distributed, directly or indirectly, in or into the United States, Australia, Hong Kong, Japan, Canada, New Zealand, South Africa or any other jurisdiction where such action is wholly or partially subject to legal restrictions or where such action would require additional prospectuses, registrations or other actions in addition to what follows from Swedish law. Nor may the information in this press release be forwarded, reproduced or disclosed in a manner that contravenes such restrictions or would entail such requirements. Failure to comply with this instruction may result in a violation of applicable securities laws.
Source: Chivas Gold