NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.
May 2, 2019, Toronto, Ontario – Troilus Gold Corp. (TSX:TLG; OTCQB:CHXMF) (“Troilus” or the “Company”) announces that it has closed its previously announced bought deal financing (the “Offering”).
Pursuant to the Offering, Troilus issued a total of 8,236,000 common shares of the Company (the “Shares”) at a price of C$0.85 per Share (the “Issue Price”) for gross proceeds of C$7,000,600. The Offering was completed through a syndicate of underwriters, co-led by Canaccord Genuity Corp. and GMP Securities L.P., and including Cormark Securities Inc., Desjardins Securities Inc., Haywood Securities Inc., National Bank Financial Inc. and PI Financial Corp. (collectively, the “Underwriters”).
In connection with the Offering, the Company has granted the Underwriters an over-allotment option (the “Over-Allotment Option”), exercisable in whole or in part, to purchase up to an additional 1,235,400 Shares at the Issue Price, for a period of up to 30 days after the closing of the Offering, to cover over-allotments, if any, and for market stabilization purposes. If the Over-Allotment Option is exercised in full, an additional C$1,050,090 will be raised pursuant to the Offering and the aggregate gross proceeds of the Offering will be C$8,050,690.
The Company intends to use the net proceeds of the Offering to continue exploration and definition drilling at its Troilus gold and copper project, and for general corporate purposes (as more fully described in the short form prospectus dated April 26, 2019).
The Shares have been offered by way of a short form prospectus filed in all of the provinces of Canada, pursuant to National Instrument 44-101 – Short Form Prospectus Distributions. The securities offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.
About Troilus Gold Corp.
Troilus is a Toronto-based, Quebec focused, advanced stage exploration and early-development company focused on the mineral expansion and potential mine re-start of the former gold and copper Troilus mine. The 16,000-hectare Troilus property is located near Chibougamau, within the Frotêt-Evans Greenstone Belt in Quebec, Canada. From 1996 to 2010, Inmet Mining Corporation operated the Troilus project as an open-pit mine, producing more than 2,000,000 ounces of gold and nearly 70,000 tonnes of copper.
The technical and scientific information in this press release has been reviewed and approved by Blake Hylands, P.Geo., who is a Qualified Person as defined by National Instrument 43-101. Mr. Hylands is an employee of Troilus and is not independent of the company under National Instrument 43-101.
For more information:
Director, Global Communications
+1 (416) 433-5696
Cautionary Note regarding Forward-Looking Statements and Information
This press release contains “forward-looking statements”, within the meaning of Canadian securities legislation, concerning the business, operations and financial performance and condition of Troilus. Forward-looking statements include, but are not limited to, statements with respect to the Offering, including whether the Over-Allotment Option will be exercised, and the intended use of proceeds of the Offering. Forward-looking statements can generally be identified by the use of forward-looking terminology such as “may”, “will”, “expect”, “intend”, “estimate”, “anticipate”, “believe”, “continue”, “plans”, or similar terminology. Forward-looking statements are made based upon certain assumptions and other important factors that, if untrue, could cause the actual results, performances or achievements of Troilus to be materially different from future results, performances or achievements expressed or implied by such statements. Such statements and information are based on numerous assumptions regarding present and future business strategies and the environment in which Troilus will operate in the future, including anticipated costs and anticipated operating and capital needs. Certain important factors that could cause actual results, performances or achievements to differ materially from those in the forward-looking statements include, amongst others, currency fluctuations, the global economic climate, dilution, share price volatility and competition. Forward-looking statements are subject to known and unknown risks, uncertainties and other important factors that may cause the actual results, level of activity, performance or achievements of Troilus to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: risks that not all approvals will be obtained, the risk that the Corporation’s actual use of the net proceeds of the Offering may vary depending on the Corporation’s operating and capital needs from time to time, the impact of general business and economic conditions, risks related to international operations, government and environmental regulation, conclusions of economic evaluations, fluctuation in foreign exchange rates and interest rates, stock market volatility, as well as those factors discussed in the section entitled “Risk Factors” in the short form prospectus of Troilus dated April 26, 2019 and filed in the provinces of Canada in connection with the Offering and available on SEDAR at www.sedar.com and “Risk Factors” in Troilus’ annual information form for the financial year ended July 31, 2018 available at www.sedar.com. Although Troilus has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Troilus does not undertake to update any forward-looking statements that are contained or incorporated by reference, except in accordance with applicable securities laws.