Revival Gold Inc. Announces Successful Completion of Private Placement
Revival Gold Inc. (TSXV: RVG, OTCQX: RVLGF) recently completed a brokered private placement, raising $7,167,464 in gross proceeds. The Offering was led by Paradigm Capital Inc. and BMO Capital Markets, with Beacon Securities Limited acting as one of the Agents. This successful completion of the private placement highlights investor confidence in Revival Gold’s growth-focused gold exploration and development endeavors.
Proposed Acquisition and Transaction Details
The private placement was carried out in connection with Revival Gold’s proposed acquisition of all the issued and outstanding shares of Ensign Minerals Inc. The three-cornered amalgamation between Revival Gold, Ensign, and Revival Gold Amalgamation Corp. (Revival Subco) is expected to close within the next few weeks, pending certain terms and conditions and approval from the TSX Venture Exchange. The completion of this transaction will significantly enhance Revival Gold’s position in the market and support its long-term growth strategy.
Utilization of Proceeds
Following the completion of the Transaction, Revival Gold intends to use the net proceeds from the private placement to conduct a Preliminary Economic Assessment on Ensign’s Mercur Project, advance permitting preparations on the Beartrack-Arnett Project, continue exploration for high-grade material at Beartrack-Arnett, and for general corporate purposes. This strategic allocation of funds demonstrates Revival Gold’s commitment to maximizing the value of its projects and laying a strong foundation for future growth.
Insider Participation and Related Party Transactions
Notably, certain insiders of Revival Gold, including Hugh Agro, Robert Chausse, Wayne Hubert, Michael Mansfield, Maura Lendon, and Tim Warman, subscribed to the private placement, indicating their confidence in the company’s prospects. This participation constitutes a related party transaction, and the Company has taken necessary steps to comply with regulatory requirements. The involvement of insiders underscores their belief in the potential of Revival Gold’s projects and the company’s overall vision for growth.
Financial Advisory Services Agreement
In addition to the private placement, Revival Gold has engaged MPA Morrison Park Advisors Inc. to provide financial advisory services, including delivering a fairness opinion to the Company’s Board of Directors regarding the Transaction and associated matters. In line with the advisory agreement, Revival Gold may elect to pay a portion of the fee in Revival Shares, further aligning the interests of MPA with the success of the Transaction.
Overall, the completion of the private placement, coupled with the impending acquisition of Ensign Minerals Inc., positions Revival Gold Inc. for continued growth and success in the gold exploration and development sector. With a strategic allocation of proceeds, strong insider support, and a focus on maximizing the potential of its projects, Revival Gold is well-positioned to create long-term value for its stakeholders and investors.
