VANCOUVER, BC, Jan. 31, 2022 /CNW/ - Gold Line Resources
Ltd. (TSXV: GLDL) (Frankfurt: 4UZ) (WKN: A2QGWC) (OTCQB: TLLZF)
("Gold Line" or the "Company") announces an increase
to its previously announced non-brokered private placement (the
"Private Placement"). As a result of increased market
interest, the Private Placement to raise gross proceeds of up to
$4,000,000 has been upsized to raise
aggregate gross proceeds of up to $4,500,000. Certain members of the Sprott group
of companies acted as finders in the Private Placement with respect
to the sale of 18,750,000 Units, or $3,000,000, representing 67% of anticipated gross
proceeds.
The net proceeds from the Private Placement are intended to be
used to complete Phase 2 of the Company's reconnaissance drilling
program at its Paubäcken property, situated in the Gold Line
Mineral Belt in Sweden, and for
general working capital purposes.
All terms of the Private Placement remain the same and the
Company now intends to issue up to 28,125,000 units (the
"Units") at a price of $0.16
per Unit for aggregate proceeds of $4,500,000 under the Private Placement. Each Unit
will consist of one (1) common share and one (1) common share
purchase warrant (each, a "Warrant"), with each Warrant
entitling the holder thereof to purchase one additional common
share (each, a "Warrant Share") at a price of $0.25 for a period of thirty-six (36) months from
the date of issuance.
The Company closed the first tranche of the Private Placement
today, January 31, 2022. Under the
first tranche of the Private Placement, the Company issued an
aggregate of 25,625,000 Units to raise gross proceeds of
$4,100,000. In connection with
closing of the first tranche, the Company paid $206,448 and issued 1,290,300 Finder's Warrants
to Sprott Global Resource Investments, Ltd., Sprott Capital
Partners LP, Canaccord Genuity Corp., Research Capital Corporation,
PI Financial Corp., Haywood Securities Inc., and Stephen Avenue
Securities Inc. in consideration for introducing subscribers to the
Private Placement. Each Finders' Warrant is exercisable at a
price of $0.16 for a period of two
(2) years from the date of issuance for one common share in the
capital of the Company.
Two insiders of the Company participated in the Private
Placement and acquired an aggregate of 1,625,000 Units. The
purchase constitutes a "related party transaction" within the
meaning of Multilateral Instrument 61-101 – Protection of Minority
Security Holders in Special Transactions ("MI 61-101"). The
issuances are exempt from the formal valuation and minority
shareholder approval requirements of MI 61-101 as they are
distributions of securities for cash and the fair market value of
the Units issued to, and the consideration paid by, the insiders
did not exceed 25% of the Company's market capitalization. No new
insiders were created, nor any change of control occurred, as a
result of the first tranche of the Private Placement.
A second and final tranche of the Private Placement of up to an
additional $400,000 is expected to
close shortly.
Completion of the second tranche of the Private Placement
remains subject to approval from the TSX Venture Exchange. All
securities issued and issuable under the first tranche of the
Private Placement will be subject to a four (4) month hold period
expiring June 1, 2022.
Securities issued under any subsequent tranche(s) will be subject
to a four (4) month hold period calculated from their date of
official closing.
About Gold Line Resources Ltd.
Gold Line Resources is focused on acquiring mineral properties
with exceptional exploration potential in the most prolific
gold-producing regions of Fennoscandia. Gold Line is working in one
of the world's top mining jurisdictions and emerging exploration
frontiers due to its strong mineral endowment, stable tenure,
straightforward permitting, favourable tax regime and supportive
geopolitical landscape.
Gold Line currently holds a prospective portfolio of five gold
exploration projects in Sweden:
one project is in the Skelleftea belt of north-central Sweden and four projects, including the
Långtjärn property, are located within the Gold Line Mineral Belt
of north-central Sweden. The
projects are located on a 200-kilometre Proterozoic greenstone
sedimentary belt that is host to multiple gold showings and
deposits.
On behalf of the Board of Directors of Gold Line
Resources,
Adam Cegielski
CEO & Director
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Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
Cautionary Note Regarding Forward-Looking
Statements
This news release contains statements that constitute
"forward-looking statements." Such forward looking statements
involve known and unknown risks, uncertainties and other factors
that may cause Gold Line's actual results, performance or
achievements, or developments to differ materially from the
anticipated results, performance or achievements expressed or
implied by such forward-looking statements. Forward looking
statements are statements that are not historical facts and are
generally, but not always, identified by the words "expects,"
"plans," "anticipates," "believes," "intends," "estimates,"
"projects," "potential" and similar expressions, or that events or
conditions "will," "would," "may," "could" or "should" occur.
SOURCE Gold Line Resources Ltd.