Independence Gold closes $6.25M private placement to fund drill program

Independence Gold Corp. (TSXV: IGO) (OTCQB: IEGCF) has closed a non-brokered private placement, raising total proceeds of $6,250,000, according to a company statement.

The Vancouver-based company issued 37,522,500 flow-through common shares at $0.16 per share for proceeds of $6,003,600, and 1,540,000 units at $0.16 per unit for proceeds of $246,400. Each unit consists of one common share and one-half of one common share purchase warrant, with each whole warrant exercisable at $0.22 per share for 24 months from the date of issue.

The company paid aggregate cash finder's fees of $209,817.60 and issued 1,311,360 finder's compensation warrants, each exercisable at $0.22 per share until Oct. 26, 2028.

Company insiders participated in the offering on the same terms as arm's length subscribers, purchasing 759,000 units for aggregate proceeds of $121,440. The insider participation constitutes a related party transaction under TSX Venture Exchange policies and Multilateral Instrument 61-101, with the company relying on applicable exemptions from minority shareholder approval and formal valuation requirements.

Proceeds from the flow-through shares will be used to incur Canadian exploration expenses at the company's British Columbia properties. The unit proceeds will be allocated to exploration and general and administrative expenses.

President and CEO Randy Turner said the flow-through funds will fully finance a winter drill program of approximately 10,000 metres targeting several high-priority areas at the company's 3Ts Project.

All securities issued under the offering are subject to a hold period of four months plus one day from the closing date.

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