22 March 2021
Nighthawk Gold Corp. is pleased to announce that it has entered into an agreement with a syndicate of underwriters led by Scotiabank, pursuant to which the underwriters have agreed to purchase 2,550,000 units (“Units”), 865,000 flow-through units (the “FT Units”), and 5,750,000 premium flow-through units (the “Premium FT Units”) on a bought deal private placement basis (the “Offering”) for aggregate proceeds of approximately $10.95 million.
The Units will be sold at a price of $0.96 per Unit, the FT Units will be sold at a price of $1.15 per FT Unit, and the Premium FT Units will be sold at a price of $1.305 per Premium FT Unit. Each Unit will be comprised of one non flow-through common share and 0.4 of one common share purchase warrant (each whole warrant, a “Warrant”). Each FT Unit will be comprised of one flow-through common share and 0.4 of one Warrant. Each Premium FT Unit will be comprised of one flow-through common share and 0.4 of one Warrant. The common share component of both the FT Units and the Premium FT Units will qualify as "flow-through shares" within the meaning of the Income Tax Act (Canada). Each Warrant shall entitle the holder thereof to acquire one common share at a price of $1.35 until the date that is 24 months following the closing date of the Offering.
The net proceeds from the sale of the Units will be used for general and administrative expenses and the gross proceeds from the sale of the FT Units and Premium FT Units will be used for exploration expenditures on Nighthawk’s Indin Lake Gold Property located in Canada’s Northwest Territories, including the Company’s previously outlined drilling targets focused on mineral resource expansion opportunities and greenfield targets to identify new, near-surface mineralization proximal to the main Colomac Deposit (see press release dated March 1, 2021).