Harvest Gold raising $2.29 million for Quebec exploration
Harvest Gold Corp. [TSXV: HVG] has closed its non-brokered private placement raising gross proceeds of $2,295,549.86, subject to the approval of the TSX Venture Exchange.
The offering consisted of 11,660,199 units at a price of 7.5 cents per unit for proceeds of $874,514.93 and 13,533,666 charity flow-through units at a price of 10.5 cents per charity flow-through unit for proceeds of $1,421,034.93.
Crescat Capital LLC, as the lead investor in the offering, purchased 5,866,666 units, bringing its non-diluted ownership of Harvest Gold common shares to approximately 19.73%. Crescat’s participation constitutes a related party transaction as defined under Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions.
Quinton Hennigh, geologic and technical adviser at Crescat Capital, stated: “Harvest Gold has, in my view, a very attractive land position over a highly prospective greenstone belt that hosts the nearby Windfall deposit. Although in the early stage, Harvest Gold’s team collected solid geophysical and geochemical data that define some compelling greenfield targets. They are now set to conduct their first drill program to test these targets. I find it refreshing to see a company tackle something bold and new like this and look forward to seeing what they encounter.”
Rick Mark, president and CEO of Harvest Gold, stated: “We are grateful to Crescat and the outstanding group of investors who have supported us in this round and over the past two year as we established ourselves in Quebec. I am very pleased to say that the drilling at Mosseau will begin shortly and that, concurrently, we will be exploring Urban Barry and Labelle for the first time.”
Each charity flow-through unit comprises one common share of the company and one common share purchase warrant of the company, each of which qualifies as a flow-through share (within the meaning of Subsection 66(15) of the Income Tax Act (Canada)). Each unit consists of one common share and one warrant. Each warrant entitles the holder thereof to acquire one common share at a price of 12 cents per warrant share for a period of two years following the closing date of the offering.
The company anticipates using the proceeds from the issue and sale of the units for the 2025 drilling campaign, various other exploration expenses and general working capital.
In connection with the offering, the company paid finders’ fees consisting of $19,790 cash and 263,867 non-transferable finder warrants to arm’s-length finders. Each finder warrant is exercisable at 12 cents until the expiry date.
Harvest Gold has three active gold projects focused in the Urban Barry area, Quebec, totalling 329 claims covering 17,539.25 hectares, located approximately 45 to 70 km east of Gold Fields’ Windfall deposit.
Harvest Gold acknowledges that the Mosseau gold project straddles the Eeyou Istchee-James Bay and Abitibi territories.