Goldshore
Announces New Strategic Partner and Non-Brokered Private Placement
of $3.75 Million to Fully Fund Development Through 2025
VANCOUVER,
B.C., November 2, 2023: Goldshore Resources
Inc. (TSXV:
GSHR
/ OTC Markets:
GSHRF / FSE: 8X00) ("Goldshore" or the "Company") is
pleased to announce a non-brokered private
placement (the "Private
Placement"), for aggregate gross proceeds of
$3,750,000. In connection with Private
Placement, the Company will issue the following securities (the
"Offered
Securities"):
(i)
37,500,000 units of the Company
("Units") at a
price of $0.10 per Unit. Each Unit consists of one common share
(each, a "Common
Share") and one common share purchase warrant
(each whole warrant, a "Warrant");
and
(ii)
Each Warrant will entitle the holder thereof
to purchase one Common Share (a "Warrant
Share") at an exercise price of $0.13 per Warrant
Share for thirty-six (36) months from the date of
closing.
Fully
Funded Through 2025
The net proceeds from the Private Placement
will be used to continue to advance the Moss Gold Project through
development of a new resource model and a new mineral resource
estimation ("MRE"); in
addition to continuing the engineering and metallurgical studies
being done on various leach methodologies (including heap leach)
and ultimately factoring this new information into a preliminary
economic assessment ("PEA"). With
80,000 meters of drilling completed and $48 million spent directly
in the ground defining the current MRE; Goldshore is well
positioned to achieve meaningful project milestones over the next
24 months with minimal cash expenditures and within the net
proceeds and current cash balances of the Company.
Strategic
Partnership
The Company announces that it has engaged
with a strategic natural resources private capital group (the
"Strategic
Advisor") participating, in aggregate, in the
Private Placement for $3,000,000 or 30,000,000 Units, with a
long-term financial commitment to unlocking the value of the Moss
Gold Project and delivering increased return to all
stakeholders.
Board
Changes
The Company also announces that Michael
Michaud has stepped down from the Board as an appointee of Wesdome
Gold Mines Ltd. ("Wesdome").
Wesdome has advised that it does not intend to nominate a
replacement at this time. Kyle Hickey will be appointed to the
Goldshore Board of Directors upon closing of the Private Placement.
Mr. Hickey has been a professional advisor to boards of directors,
executive management teams, and private and public capital on a
wide range of capital structure solutions including equity, debt,
and hybrid financial instruments, as well as merger and acquisition
transactions.
President and CEO Brett Richards stated:
"We welcome
this partnership with our new strategic shareholders, who are
committed to advancing the project through its next stages of
development. On behalf of the Goldshore directors, we would like to
thank Mike for his tenure on the Board, as his technical and
commercial approach has helped guide the Company since inception.
We would also like to welcome Kyle to the Goldshore
board. Kyle has extensive
experience in the commodity and resource capital markets, financing
assets through all stages of development from resource definition
to construction and project finance, and long-term operating
capital structures. This financing and partnership represents a new
phase for Goldshore and is key to unlocking long-term value and
driving success."
PEA and
Resource Update
As a result of the new financial and
strategic commitment in Goldshore, the Company is reviewing the
current PEA in an effort to rescope and optimize the Moss Gold
Project under multiple operational and economic parameters. To that
end, the Company has engaged APEX Geoscience to prepare a new
resource model and a new MRE. The Company has also engaged the
expertise of Kappes Cassiday & Associates, leaders in heap
leach engineering and technology, to conduct detailed metallurgical
test work to determine the efficacy of heap leaching the lower
grade material contained in the Moss Gold deposit. Once the results
from these activities are received, the Company will determine its
next course of development.
Vice
President, Exploration, Pete Flindell: "We welcome our new
strategic partners, as this commitment allows us to recalibrate the
scope of the future project we want to take to feasibility study.
We have a significant portion of high-grade mineralization in the
shear zones (3.35M oz Au or 55% of the current mineral resource)
with an average head grade of 1.84 g/t Au. This creates the
opportunity for a hybrid process with a small flotation, regrind
and carbon in leach plant for the high-grade mineralization, and a
large heap leach operation for the low-grade material."
Additional
Financing Details
Eventus Capital Corp. has been appointed as a
finder in connection with the Private Placement. The Company may
pay a finder's fee of 6% in either cash or in Units of the gross
proceeds received by the Company from the Private Placement.
The
securities issued pursuant to the Private Placement will be subject
to a four-month and one day hold period under applicable securities
laws in Canada. Closing of the Financing is expected to occur on or
about November 14, 2023 and is subject to approval by the TSX
Venture Exchange.
Qualified Person
Mr.
Flindell, PGeo, MAusIMM, MAIG, Vice-President, Exploration, of the
Company, and a qualified person under National Instrument 43-101,
has approved the scientific and technical information contained in
this news release.
About Goldshore
Goldshore is an emerging junior gold
development company and owns 100% of the Moss Gold Project located
in Ontario. The Company is well-financed and supported by an
industry-leading management group, board of directors, and advisory
board. Goldshore is well positioned to advance the Moss Gold
Project through the next stages of exploration and
development.
For More
Information - Please Contact:
Brett A. Richards
President, Chief Executive Officer and
Director
Goldshore Resources Inc.
P. +1 604
288 4416 M. +1
905 449 1500
E. brichards@goldshoreresources.com
W. www.goldshoreresources.com
Facebook: GoldShoreRes |
Twitter: GoldShoreRes |
LinkedIn: goldshoreres
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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 the Company'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.
Forward-looking statements in this news
release include, among others, statements relating to expectations
regarding the exploration and development of the Moss Gold Project,
the release of an updated mineral resource estimate and preliminary
economic assessment, and other statements that are not historical
facts. By their nature, forward-looking statements involve known
and unknown risks, uncertainties and other factors which may cause
our actual results, performance or achievements, or other future
events, to be materially different from any future results,
performance or achievements expressed or implied by such
forward-looking statements. Such factors and risks include, among
others: the Company may require additional financing from time to
time in order to continue its operations which may not be available
when needed or on acceptable terms and conditions acceptable;
compliance with extensive government regulation; domestic and
foreign laws and regulations could adversely affect the Company's
business and results of operations; the stock markets have
experienced volatility that often has been unrelated to the
performance of companies and these fluctuations may adversely
affect the price of the Company's securities, regardless of its
operating performance; and the impact of COVID-19.
The forward-looking information contained in
this news release represents the expectations of the Company as of
the date of this news release and, accordingly, is subject to
change after such date. Readers should not place undue importance
on forward-looking information and should not rely upon this
information as of any other date. The Company undertakes no
obligation to update these forward-looking statements in the event
that management's beliefs, estimates or opinions, or other factors,
should change.