Augusta Gold Corp. (TSX:G, OTCQB:AUGG, FSE:11B))))) ("Augusta Gold" or the "Company") is pleased to announce that it has entered into an agreement with Eight Capital, to act as the lead underwriter and sole bookrunner on its own behalf and, if applicable, on behalf of a syndicate of underwriters (collectively, the "Underwriters"), pursuant to which the Underwriters have agreed to purchase, on a bought deal underwritten basis, 5,847,954 units of Augusta Gold (the "Units") at a price of C$1.71 per Unit for aggregate gross proceeds of approximately C$10 million (the "Offering"). Each Unit will be comprised of one share of the Company's common stock and one-half of one common stock purchase warrant (each whole common stock purchase warrant, a "Warrant"). Each Warrant will entitle the holder to acquire one share of the Company's common stock for a period of 36 months following the closing of the Offering at a price of C$2.30.
In addition, Augusta Gold has agreed to grant the Underwriters an option (the "Over-Allotment Option"), exercisable at any time, in whole or in part, until the date that is 30 days following the closing of the Offering, to purchase up to an additional 15% of the number of Units. The Over-Allotment Option may be exercised for the purpose of covering over-allotments made in connection with the Offering and for market stabilization purposes. The Offering is expected to close on or about January 18, 2023, subject to customary closing conditions, including the approval of the Toronto Stock Exchange.
Augusta Gold intends to use the net proceeds of the Offering for the advancement of the Bullfrog Project, and for working capital and general corporate purposes.