EnviroGold Global Closes Over Subscribed Second Tranche of Non-Brokered Private Placement, Signaling Strong Investor Confidence

Rhea-AI Summary

EnviroGold Global (ESGLF) has successfully closed the second tranche of its oversubscribed non-brokered private placement, raising C$1,782,581.50 through the issuance of 17,825,815 units at $0.10 per unit. Each unit includes one common share and half a warrant, with each full warrant exercisable at $0.12 until February 27, 2027.

An existing noteholder converted $170,810.96 of debt into 1,708,110 units. Combined with the first tranche, total gross proceeds reached $5,635,987.56, including debt settlements. Approximately C$3.02M was used to repay convertible notes from February 2023. The company paid finder's fees of $122,524.89 and issued 3,362,749 warrants.

Due to continued investor interest, EnviroGold may proceed with a third tranche to raise up to an additional $500,000 on the same terms.

Positive

• Oversubscribed private placement indicates strong investor confidence
• Raised significant capital of C$5.64M across two tranches
• Successful debt conversion from existing noteholders
• Additional C$500K potential raise in third tranche due to continued investor interest

Negative

• C$3.02M of proceeds used to repay existing debt rather than growth
• Significant dilution through issuance of 17.8M new units
• Additional dilution from warrant exercise potential

TORONTO, March 03, 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, is pleased to announce the successful closing of the second tranche of its non-brokered private placement (the “Offering”). The Offering was oversubscribed, underscoring robust investor confidence in the Company’s innovative solutions and growth strategy.

The strong demand for this financing round highlights growing market recognition of EnviroGold’s ability to unlock economic and environmental value from mine tailings and waste. The oversubscription reflects the commitment of both existing and new investors who share the Company’s vision for a cleaner, more sustainable future.

The second tranche of the Offering consisted of 17,825,815 units (the “Units”) of the Company, issued at a price of $0.10 per Unit, for aggregate proceeds of C$1,782,581.50. Each Unit was comprised of one common share (each a “Common Share”) and one half of one common share purchase warrant (with two such half warrants, being a “Warrant”). Each Warrant entitles the holder thereof to acquire one additional Common Share at a price of $0.12 until February 27, 2027.

Additionally, an existing noteholder with a note maturing on June 5, 2025, elected to convert $170,810.96, comprising both principal and accrued interest, into 1,708,110 Units of the offering.

Together with the first tranche of the Offering, which closed on February 19, 2025, the Company has raised gross proceeds of $5,635,987.56, which included $232,690.40 in the form of debt settlements of principal and accrued interest due to convertible noteholders who elected to reinvest in the Offering and $228,715.66 from existing noteholders who elected to convert their principal and accrued interest into Units of the Offering. Of this, approximately C$3.02M has been used to repay the principal and interest on certain convertible notes issued on February 6 and 7, 2023, as previously announced on February 21, 2025. The remaining proceeds from the Offering will be allocated to general working capital purposes.

CEO David Cam commented: “We are thrilled by the overwhelming support for this private placement, which reinforces investor confidence in our mission and execution strategy. The oversubscription not only validates our innovative approach but also provides us with the capital to accelerate key initiatives, including the expansion of our strategic relationships, customer engagement and operational footprint and the further development of our proprietary clean technology solutions. These advancements strengthen our position as a leader in sustainable green metal recovery and responsible resource management.”

The net proceeds from the Offering will be strategically deployed to drive growth, enhance operational efficiencies, and advance the commercialisation of the Company’s proprietary reclamation technologies. By leveraging cutting-edge solutions, EnviroGold remains committed to reducing environmental liabilities while unlocking significant value from mine waste, aligning with the global shift toward sustainable resource management.

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 paid finder’s fees of $122,524.89 cash and issued 3,362,749 Warrants on the same terms as above to qualified parties in connection with the first and second tranches of the Offering.

The Company also wishes to clarify that 4,680,619 Warrants were issued to finders from the private placement that closed on January 10, 2025, not 3,149,073 as previously noted in the Company’s January 13, 2025 news release.

The Company also announces that, due to continued investor interest, it may proceed with a third tranche of the Offering to raise up to an additional $500,000 on the same terms as noted above. Further details will be provided as they become available.

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 focused on shareholder value.

CONTACTS:

Investor Cubed
Neil Simon, CEO
+1 647 258 3310
nsimon@investor3.ca
ir@envirogoldglobal.com

Forward-Looking Statements

This news release contains “forward-looking statements” within the meaning of applicable securities laws, including, without limitation, earnings guidance, economic guidance, operational guidance and future capital spending amounts. All statements contained herein that are not clearly historical in nature may constitute forward-looking statements. Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or may contain statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “will continue”, “will occur” or “will be achieved”. The forward-looking information and forward-looking statements contained herein include, but are not limited to, the use of the proceeds from the Offering, the receipt of regulatory approvals, statements about the the Company’s expectation of future commercial success and growth in its market position, and the Company’s ability to accelerate the world’s transition to a circular resource economy. Forward-looking information in this news release are based on certain assumptions and expected future events, namely: the Company’s ability to continue as a going concern; the continued commercial viability and growth in the clean technology and mining waste reprocessing industry; continued approval of the Company’s activities by the relevant governmental and/or regulatory authorities; the continued development of clean technology and mining waste reprocessing technology; and the continued growth of the Company. These statements involve known and unknown risks, uncertainties and other factors, which may cause actual results, performance or achievements to differ materially from those expressed or implied by such statements, including but not limited to: the potential inability of the Company to continue as a going concern; the Company’s inability to accelerate the world’s transition to a circular resource economy, the risks associated with assessing metallurgical recovery rates from mine tailings and waste and related volumetric assessments, the risks associated with the mining and mining waste recycling industry in general; increased competition in the clean technology and waste reprocessing market; the potential unviability of the clean technology and mining waste reprocessing market; incorrect assessment of the value and potential benefits of various transactions; risks associated with potential governmental and/or regulatory action with respect to clean technology and mining waste reprocessing; risks associated with a potential collapse in the value of clean technology and waste reprocessing; and risks relating to the Company’s potential inability to expand its reprocessing pipeline. 

Readers are cautioned that the foregoing list is not exhaustive. Readers are further cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement and reflect the Company’s expectations as of the date hereof and are subject to change thereafter. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, estimates or opinions, future events or results or otherwise or to explain any material difference between subsequent actual events and such forward-looking information, except as required by applicable law. 

FAQ

How much did EnviroGold Global (ESGLF) raise in the second tranche of its private placement?

EnviroGold raised C$1,782,581.50 through the issuance of 17,825,815 units at $0.10 per unit in the second tranche.

What are the terms of ESGLF's warrant exercise price and expiration date?

Each full warrant can be exercised at $0.12 per share until February 27, 2027.

What is the total amount raised by ESGLF in both tranches of the private placement?

The total gross proceeds from both tranches reached $5,635,987.56, including debt settlements and conversions.

How much additional funding is ESGLF planning to raise in the potential third tranche?

EnviroGold may proceed with a third tranche to raise up to an additional $500,000 on the same terms.

How much of the raised funds were used to repay previous convertible notes?

Approximately C$3.02M was used to repay principal and interest on convertible notes issued in February 2023.