MONTREAL, QUEBEC–(Marketwired – June 22, 2017) – GFK Resources Inc. (TSX VENTURE:GFK) (the “Company”) announces the first closing of a unit and flow-through share non-brokered private placement (the “Offering”) for total gross proceeds of $1,167,200. In total, the Company issued 7,200,000 units (the “Units”) at a price of $0.10 per Unit ($720,000) and 3,440,400 flow-through common shares (the “Flow-Through Shares”) at a price of $0.13 per Flow-Through Share ($447,200). Each Unit consists of one common share of the Company and one common share purchase warrant (a “Warrant”), each Warrant entitling the purchaser to acquire one additional common share of the Company at a price of $0.15 per share until December 21, 2018 (18 months following the closing).
The first closing forms part of a larger Offering of up to 10,000,000 Units and 10,000,000 Flow-Through Shares for total gross proceeds of $2,300,000. The Company expects to proceed shortly with the second and final closing of the Offering.
In connection with the first closing of Offering, the Company paid total finders’ fees of $28,160 in cash and issued 224,000 non-transferable share purchase warrants, each warrant entitling the holder thereof to purchase one common share of the Company at a price of $0.10 per share until December 21, 2018. The securities issued under the first closing are subject to a four month hold period ending October 22, 2017. The Offering remains subject to the final approval of the TSX Venture Exchange.
The proceeds of the Offering will be used by the Company to advance its exploration projects within Quebec and for general working capital. La Société d’investissement dans la diversification de l’exploration (“SIDEX”) participated in the first closing of the Offering for an amount of $100,000 under the “Field Action 2016” program. The mission of SIDEX is to invest in companies engaged in mineral exploration in Québec.
About GFK: GFK Resources Inc. is a mining exploration company focused on discovering high quality gold and base metals deposits within strategically located properties within proven mining camps, sometimes close to existing mines in the Abitibi Greenstone Belt located in north-west Quebec and north-east Ontario – one of the most prolific gold deposits areas in the world. GFK holds assets in Val-d’Or, Matagami and Chibougamau areas. Bachelor Extension property is adjacent to Metanor Resources Inc.- Bachelor Gold Mine, Vezza Extension and Vezza North are located few kilometers West and North of Nottaway Resources Vezza Mine. More recently, GFK acquired new properties, all easily accessible by a good road network: Fecteau property, located in the active Urban-Barry townsip, Winwin property, located in the neighbourhood of Iamgold’s Monster Lake property, and Grizzly property, located in Chibougamau mining camp.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Michael W. Kinley, CPA, CA
President & CFO, Director