TORONTO, Feb. 20, 2025 (GLOBE NEWSWIRE) -- EnviroGold Global Limited (CSE: NVRO | OTCQB: ESGLF | FSE: YGK) (“EnviroGold,” or the “Company”), a clean technology company that monetises mine waste and tailings while reducing environmental and social liabilities, announces that further to the press release dated February 13, 2025, it has closed the first tranche (the “First Tranche”) of a non-brokered private placement of units in the capital of the Company (the “Units”) for gross proceeds of CDN $ 3,682,595.1 (the “Offering”).
The Company issued 36,825,951 Units at a price of $0.10 per Unit under the closing of the First Tranche. Each Unit was comprised of one common share and one half of one transferrable common share purchase warrant (with two such half warrants being a “Warrant”). Each Warrant will be exercisable by the holder thereof to acquire one additional common share of the Company at a price of $0.12 for a period of two years from closing.
Of the total Offering, approximately $3,026,000.31 of the gross proceeds will be used towards the repayment of the principal and interest due on certain convertible notes issued on February 6 and 7, 2023, with the balance to be used for general working capital purposes. Approximately $232,690.40 of the gross proceeds was in the form of a debt settlement of principal and accrued interest due to existing convertible noteholders whom elected to reinvest in the Offering. An existing noteholder, whose note matures on February 27th, also elected to convert the total amount of $57,904.70, comprising both principal and accrued interest, into Units of the Offering.
David Cam, Chief Executive Officer of EnviroGold, stated, “The growing investor interest in EnviroGold along with the first closing this Offering has allowed the Company to reduce its debt, strengthened its balance sheet and position the Company for growth. We sincerely appreciate the support of the noteholders who reinvested, as well as the new and existing shareholders who participated in the Offering, reflecting their confidence in our vision.”
The Offering is subject to the receipt of all required regulatory approval, including acceptance of the CSE. All securities issued in connection with the Offering will be subject to a hold period of four months and one day from the date of issuance, in accordance with applicable Canadian securities laws. The Company expects to complete an additional closing or closings on or prior to February 27, 2025.
Certain directors of the Company subscribed for an aggregate of 1,742,637 Units and gross proceeds of $174,263.70 under the first tranche of the Offering. Such participation is considered to be a “related party transaction” as defined under Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61- 101”). The Company is relying on exemptions from the minority shareholder approval and formal valuation requirements applicable to the related-party transactions under sections 5.5(b) and 5.7(1)(b), respectively, of MI 61-101, as neither the fair market value of the Units to be acquired by the participating directors and officers nor the consideration to be paid by such directors and officers is anticipated to exceed $2,500,000.
The securities issued under the Offering have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and were not to be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in the United States or in any other jurisdiction in which such offer, solicitation or sale would be unlawful.
About EnviroGold Global
EnviroGold Global is a technology company enabling the global mining industry to monetise valuable metals from mine waste and tailings and reduce environmental liabilities. EnviroGold’s proprietary technology is at the leading edge of demand for precious and critical metals and greater social demand for better environmental outcomes. The Company operates on a technology license fee model with low capex requirements and intends to establish itself as a leading global technology company focussed on shareholder value.