2 March 2017
TORONTO, ONTARIO--(Marketwired - March 2, 2017) - Nighthawk Gold Corp. (TSX VENTURE:NHK)
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Nighthawk Gold Corp. ("Nighthawk" or the "Company") (TSX VENTURE:NHK) is pleased to announce that it has closed the bought deal private placement (the "Offering") announced on February 7 and February 8, 2017, which was led by PI Financial Corp. on behalf of a syndicate of underwriters which included Cannaccord Genuity Corp. (the "Underwriters") and that the over-allotment option granted to the Underwriters was exercised in full. The Company is also pleased to announce that it has completed a non-brokered private placement (the "Non-Brokered Offering").
"The successful closing of this financing ensures Nighthawk has the resources to continue advancing our flagship Colomac Gold Project, and positions us to deliver on the many priority targets within our regional Indin Lake Gold Property. We look forward to an aggressive 2017 exploration program; our busiest to-date," said Dr. Michael Byron, President and CEO.
Pursuant to the Offering, the Company issued an aggregate of 12,365,593 flow-through units ("FT Units"), which underlying common shares qualify as "flow-through shares" within the meaning of the Income Tax Act (Canada), at a price of $0.93 per FT Unit and 16,428,573 units ("Units") at a price of $0.70 per Unit, for aggregate gross proceeds of $23,000,002. Each Unit is comprised of one common share and one-half of one transferable common share purchase warrant (each whole common share purchase warrant, a "Warrant"). Each FT Unit is comprised of one flow-through common share and one-half of one Warrant (issued on a non-flow-through basis). Each Warrant entitles the holder thereof to acquire one common share of the Company at a price of $1.10 until September 2, 2018.
In connection with the Offering, the Underwriters received a cash fee and 824,631 non-transferable compensation options. Each compensation option is exercisable into one common share of the Company at a price of $0.70 until September 2, 2018.
Pursuant to the Non-Brokered Offering, the Company issued 3,027,926 Units at a price of $0.70 per Unit, for aggregate gross proceeds of $2,119,548.
The gross proceeds from the sale of the FT Units will be used for general exploration expenditures on Nighthawk's Indin Lake Gold Property located in the Northwest Territories. The net proceeds from the sale of the Units under the Offering and the gross proceeds from the sale of the Units under the Non-Brokered Offering will be used for general working capital purposes.