Falcon Gold Corp raises $975,000 in controversial private placement deal

In Canada, Falcon Gold Corp. announced on January 6, 2025, that it had successfully closed the third tranche of a previously disclosed non-brokered private placement. The company issued a total of 6,666,660 Quebec flow-through units at a price of $0.045 per unit, yielding gross proceeds of $299,999.70. In addition to this, Falcon issued 2,286,442 non-flow-through units at $0.035 per unit, which provided an additional $80,025.50. This specific private placement has resulted in aggregate gross proceeds of $380,025.20 during this tranche. Over the course of the three tranches, the Company has raised a total of $975,025.17, totaling 14,000,000 flow-through units, 6,666,660 Quebec flow-through units, and 3,286,442 non-flow-through units. For the flow-through units issued, each unit consists of one common share designated as a flow-through share, accompanied by half of one common share purchase warrant. These warrants entitle the holder to purchase additional common shares at a price of $0.08 per share for a period of two years. Similarly, the Quebec flow-through units have the same structure, with their own flow-through shares and accompanying warrants. Conversely, each non-flow-through unit includes one non-flow-through share and one share purchase warrant, allowing holders to acquire a warrant share at an exercise price of $0.05 per share for a period of four years. The proceeds from the flow-through units are dedicated to incurring Canadian exploration expenses, as defined by the Income Tax Act, specifically regarding Falcon's properties located in Newfoundland, Ontario, and Quebec. Meanwhile, the proceeds from the non-flow-through units will be allocated for general working capital and corporate purposes. Importantly, the announcement emphasized that none of the proceeds from the private placement will be allocated for payments to non-arm's length parties or to individuals engaged in investor relations activities. Furthermore, each finder’s warrant granted during the private placement enables the holders to acquire one warrant share at $0.08 per share for a period of two years. It is crucial to note that the securities detailed in this offering have not been registered under the United States Securities Act nor under any state securities laws, which means they cannot be sold or offered within the United States unless the registration requirements are met or applicable exemptions are utilized. The release of this information is subject to the approval from the TSX Venture Exchange, indicating the compliance and regulatory framework that Falcon Gold Corp. is navigating with this capital raise initiative.