E2Gold Announces Financing and Exploration Plans Visit us at PDAC Booth 2130
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TORONTO, ON / ACCESSWIRE / March 1, 2024 / E2Gold Inc. (the "Company") (TSXV:ETU)(OTCQB:ETUGF) is pleased to announce its plans to raise up to $1,000,000 in an equity private placement to fund its next stage drilling plans on its district-scale Hawkins gold project in north Central Ontario. Shareholders can learn more about these plans at the upcoming Prospectors and Developers Conference in Toronto, March 3 to March 5, at Booth 2130.
Eric Owens, CEO, states, "Our 2023 field crews were able to confirm high grade gold and base metals in surface occurrences up to 200 m north and 3.5 km east along trend with the existing McKinnon Zone Inferred Resource." Dr. Owens added, "A shallow-level program is planned to test this never-before-drilled area."
Figure 1. Map of McKinnon Zone Eastern Extension with proposed initial drill targets
The private placement will consist of a combination of units ("HD Units"), priced at C$0.025, and Flow Through Units ("FT Units"), priced at C$0.030, in any combination to raise a maximum aggregate gross proceeds of up to $1,000,000.
Each HD Unit will consist one common share of the Company plus one common share purchase warrant to acquire one additional common share at a price of C$0.05 for a period of 24 months from the date of issuance. Each FT Unit will be comprised of one "flow-through" common share of the Company (a "FT Share") and one common share purchase warrant (a "Warrant"), with each whole Warrant exercisable to acquire one additional common share at a price of $0.06 for a period of 24 months from the date of issuance thereof. Up to 50% of the offering may be purchased by insiders. The offering remains subject to the approval of the TSX Venture Exchange.
In other matters, the Company notes that it has entered into a general security agreement dated February 26th, 2024 (the "GSA") in connection with an existing promissory note of the Company dated March 15, 2023 (the "Promissory Note"), held by certain insiders (non-arm's length parties). The Promissory Note is in the principal amount of US$153,000, is due on demand, and bears interest at a rate of 12.5% per annum until repayment. Pursuant to the GSA, security has been granted against the Promissory Note in respect of all or substantially all of the assets of the Company. The GSA remains subject to the final approval of the TSX Venture Exchange.