MONTRÉAL, March 28, 2022 (GLOBE NEWSWIRE) — Bullion Gold Resources Corp. (TSX-V: BGD) (“Bullion Gold” or the “Corporation” or the “Company”) is pleased to announce that it has closed its previously announced private placement (the “Offering“), pursuant to which it issued 6,071,875 common share units (the “Units”) of the Corporation at a price of $0.08 per Unit for gross proceeds of $485,750.
Each Unit consist of one common share, and one-half of one common share purchase warrant (each whole, a “Warrant”) with each Warrant entitling the holder to purchase one additional common share in the capital of the Corporation for a period of 18 months from the date of closing of the Private Placement, at a purchase price of $0.15 per common share.
Related Party Transaction
An insider of the Corporation subscribed for a total of 259,375 Units under the Offering, which is 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 to the insider are exempt from the valuation requirement of MI 61-101 by virtue of the exemption contained in section 5.5(b) as the Corporation’s shares are not listed on a specified market and from the minority shareholder approval requirements of MI 61-101 by virtue of the exemption contained in section 5.7(a) of MI 61-101 in that the fair market value of the consideration of the securities issued to the related party did not exceed 25% of the Corporation’s market capitalization. The Corporation did not file a material change report more than 21 days before the expected closing of the Offering as the details of the Offering and the participation therein by related parties of the Corporation were not settled until shortly prior to closing and the Corporation wished to close on an expedited basis for sound business reasons.
2022 Exploration Program
For the 2022 period, the Company’s management intends to complete a drilling program of approximately 15,000 meters in three specific phases on the Bousquet project. The Company has obtained part of its drilling permits and is waiting to obtain another group of permits representing a total of forty holes to be drilled in the Paquin East zone and in the NE portion of the property.
A first phase of about 3,000 meters should begin shortly. These holes will aim to verify the Paquin zone near the surface as well as certain historical data. The second phase of drilling of approximately 5,000 meters will aim to test the depth extension of that same zone as well as to verify the eastern extension.
The last phase of drilling will test the continuity at depth of that same gold zone at a depth of more than 500 vertical meters. During this same phase, the Company also plans to test various magnetic targets located in the northeast sector of the property.
All the results obtained and compiled with the historical data will eventually be used to establish an initial 43-101 quality estimate of the gold resource in the Paquin East zone.
About Bullion Gold Resources
Bullion Gold is involved in the identification, exploration, and development of gold mining properties in the province of Quebec.
For more information about the Company, visit www.bulliongold.ca
Other Information
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Forward-Looking Statements: This press release contains forward-looking statements. Forward-looking statements are frequently characterized by words such as “plan”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”, “may”, “will”, “would”, “potential”, “proposed” and other similar words, or statements that certain events or conditions “may” or “will” occur. The forward-looking statements are based on certain key expectations and assumptions made by the Corporation. Although Bullion Gold believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because Bullion Gold can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. In addition to other risks that may affect the forward-looking statements in this press release are those set out in the Corporation’s management discussion and analysis of the financial condition and results of operations for the year ended December 31, 2019 and the third quarter ended September 30, 2020, which are available on the Corporation’s profile at www.sedar.com. The forward-looking statements contained in this press release are made as of the date hereof and Bullion Gold undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.