15 May 2019
Nighthawk Gold Corp. is pleased to announce that it has entered into an agreement with a syndicate of underwriters co-led by PI Financial Corp and BMO Capital Markets Canada Ltd., including Haywood Securities Inc., pursuant to which the underwriters have agreed to purchase 8,054,000 flow-through common shares (the "FT Shares") and 11,674,000 charity flow-through common shares (the "Charity FT Shares"), which the FT Shares and Charity FT Shares will qualify as "flow-through shares" within the meaning of the Income Tax Act (Canada), on a bought deal private placement basis (the "Offering").
The FT Shares will be sold at a price of $0.40 per Share and the Charity FT Shares will be sold at a price of $0.495 per Charity FT Share, for aggregate gross proceeds of $9.0 million. The Company has also granted the underwriters an option to purchase up to an additional 1,208,100 FT Shares and 1,751,100 Charity FT Shares to cover over-allotments, exercisable in whole or in part at any time prior to the closing date of the Offering.
The gross proceeds from the sale of the FT Shares and Charity FT Shares will be used for exploration expenditures on Nighthawk's Indin Lake Gold Property located in Canada's Northwest Territories, where the Company intends to increase its 2019 exploration budget from the initial $10 million to $15 million, and expects to complete a minimum of 35,000 metres of drilling on its Colomac Gold Project and several of its high-priority regional targets.