Peterson McVicar Acts for Probe Metals in Upsizing of Bought Deal Private Placement to $20 Million

On February 14, 2022 Probe Metals Inc. (“Probe” or the “Company”) announced that it had entered into an agreement with Canaccord Genuity Corp. on behalf of a syndicate of underwriters (collectively, the “Underwriters”), pursuant to which the Underwriters have agreed to purchase, on a “bought deal” basis, 4,840,000 flow-through units of the Company (the “Flow-Through Units”) at a price of $3.10 per Flow-Through Unit (the “Offering Price”) for gross proceeds of $15,004,000 (the “Underwritten Offering”).

 

The Company has granted the Underwriters an option, exercisable in whole or in part at any time up to 48 hours prior to the Closing Date (as defined herein), to arrange for the purchase of up to an additional 726,000 Flow-Through Units at the Offering Price (the “Underwriters’ Option” and together with the Underwritten Offering, the “Offering”). The Offering is expected to close on or about March 8, 2022 (the “Closing Date”) and is subject to the Company receiving all necessary regulatory approvals.

 

The gross proceeds of the Offering will be used by the Company to incur eligible “Canadian exploration expenses” that will qualify as “flow-through mining expenditures” as such terms are defined in the Income Tax Act (Canada) and, in respect of Québec resident subscribers who are eligible individuals, will qualify for inclusion in the “exploration base relating to certain Québec surface mining or oil and gas exploration expenses” and the "exploration base relating to certain Québec exploration expenses" of the Corporation as such terms are defined in the Taxation Act (Québec) (the “Qualifying Expenditures”) related to the Company’s properties located in Quebec, Canada on or before December 31, 2022. All Qualifying Expenditures will be renounced in favour of the subscribers effective December 31, 2022.

 

Probe Metals Inc. is a leading Canadian gold exploration company focused on the acquisition, exploration and development of highly prospective gold properties. The Company is committed to discovering and developing high-quality gold projects, including its key asset the multimillion-ounce Val-d’Or East Gold Project, Québec. The Company is well-funded and controls a strategic land package of approximately 1,500-square-kilometres of exploration ground within some of the most prolific gold belts in Québec. The Company was formed as a result of the $526M sale of Probe Mines Limited to Goldcorp. Eldorado Gold Corporation currently owns approximately 10.9% of the Company.

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