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TORONTO, Feb. 23, 2017 /CNW/ - Superior Gold Inc. ("Superior Gold" or the "Corporation") (TSXV: SGI) is pleased to announce that it has closed its initial public offering ("IPO") of 28,450,000 common shares at a price of C$1.00 per share (the "Offering Price") for gross proceeds of C$28.45 million. The Corporation's common shares will commence trading today on the TSX Venture Exchange (the "Exchange") under the symbol "SGI". GMP Securities L.P. acted as lead agent and sole bookrunner for the IPO. The syndicate of agents also included BMO Capital Markets, Cormark Securities Inc., Haywood Securities Inc., TD Securities Inc. and Sprott Capital Partners.
Superior Gold has granted to the agents an over-allotment option, exercisable for a period of 30 days following the date of closing of the IPO, to purchase up to an additional 4,267,500 common shares at a price of C$1.00 per common share to cover over-allotments, if any, and for market stabilization purposes.
In connection with the closing of the IPO, the Corporation has issued to Northern Star Resources Ltd. 18,859,041 common shares, representing approximately 20.6% of the issued and outstanding common shares of the Corporation, and 14,429,521 warrants. Each warrant entitles Northern Star Resources Ltd. to acquire one common share of the Corporation at an exercise price in U.S. dollars equal to a 100% premium to the Offering Price for a period of 5 years from the date of the closing of the IPO.
Furthermore, the Corporation is also pleased to announce that the 32,600,000 outstanding special warrants will convert today into common shares of the Corporation.
A copy of Superior Gold's final prospectus is available on SEDAR at www.sedar.com.
The securities offered have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any U.S. state securities laws, and may not be offered or sold in the United States or to United States persons absent of registration, or the availability of any applicable exemption from the registration requirement, of the U.S. Securities Act and applicable U.S. state securities laws. This release shall not constitute an offer to sell, or a solicitation of an offer to buy, securities in the United States, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
About Superior Gold
Superior Gold's principal business objectives are the acquisition, exploration, development and operation of gold resource properties. The Corporation's principal asset is the Plutonic Gold Operations, located in Australia. The Plutonic Gold Operations include the Plutonic Gold Mine which is a producing underground operation with a central mill, the Hermes open pit development project and an interest in the Bryah Basin joint venture.
Forward Looking Information
This press release contains "forward-looking information" within the meaning of applicable securities laws that is intended to be covered by the safe harbours created by those laws. "Forward-looking information" includes statements that use forward-looking terminology such as "may", "will", "expect", "anticipate", "believe", "continue", "potential" or the negative thereof or other variations thereof or comparable terminology. Such forward-looking information includes, without limitation, the Corporation's expectations, strategies and plans for the Plutonic Gold Operations, including the Corporation's planned exploration, development and production activities at the Plutonic Gold Mine, Hermes and Bryah Basin; expectations on the size of the IPO; and the intended uses of the net proceeds of the IPO.
Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management at the date the statements are made. Furthermore, such forward-looking information involves a variety of known and unknown risks, uncertainties and other factors which may cause the actual plans, intentions, activities, results, performance or achievements of the Corporation to be materially different from any future plans, intentions, activities, results, performance or achievements expressed or implied by such forward-looking information. See "Risk Factors" in the Corporation's final prospectus dated February 15, 2017 filed on SEDAR at www.sedar.com for a discussion of these risks.
The Corporation cautions that there can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, investors should not place undue reliance on forward-looking information. Except as required by law, the Corporation does not assume any obligation to release publicly any revisions to forward-looking information contained in this press release to reflect events or circumstances after the date hereof.
Neither the Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Superior Gold Inc.