Avidian Gold arranges $5-million private placement

May 18, 2018

2018-05-17 09:27 ET – News Release

Mr. James Polson reports

AVIDIAN GOLD ANNOUNCES C$5 MILLION BROKERED PRIVATE PLACEMENT

Avidian Gold Corp. has appointed a syndicate of agents led by Red Cloud Klondike Strike Inc., and including PI Financial Corp., Canaccord Genuity Corp. and Mackie Research Capital Corp. to sell, by way of private placement, units of the company for gross proceeds of up to $5-million. Each unit is offered at a price of 50 cents and will consist of one common share of the company and one-half of a transferable common share purchase warrant, each warrant entitling the holder thereof to acquire one common share of the company at a price of 76 cents for a period of 24 months from the date of closing of the offering. Additionally, each warrant will be callable during the 24-month period, at the option of the company, should the company’s common shares trade above $1 for 20 consecutive trading days on the TSX Venture Exchange. Subscribers will be notified of the call provision being triggered and will have a 30-day period to exercise the warrant. The company has granted the agents an option exercisable, in whole or in part, at any time up to 48 hours before the closing of the offering, to place up to an additional $2-million of units. The company reserves the right to sell a portion of the units under the offering to select subscribers directly, on a non-brokered basis.

The net proceeds from the offering shall be primarily used for exploration and development at the company’s Golden zone and Amanita projects and for general corporate and working capital purposes.

The closing of the offering is expected to occur on or about June 14, 2018, and is subject to receipt of all necessary regulatory approvals. The units, including all underlying securities thereof, and any broker or finders’ warrants issued with respect to the offering will be subject to a four-month hold period in accordance with applicable Canadian securities laws.

About Avidian Gold Corp.

The corporation is an exploration and development company whose primary business interest is in four advanced gold properties located in the United States: the Golden Zone and Amanita properties, situated in south-central Alaska, and the Jungo and Dome Hill properties, located in Nevada, each held 100 per cent by the corporation. The Golden Zone property hosts a National Instrument 43-101 (2017) indicated gold resource of 267,400 ounces (4,187,000 tonnes at 1.99 grams per tonne gold) plus an inferred gold resource of 35,900 ounces (1,353,000 tonnes at 0.83 g/t Au). The deposit is exposed on surface and is open at depth and along strike. Avidian also holds a 100-per-cent interest in the Strickland massive sulphide property located in Newfoundland, Canada.

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