Sky Gold Flow Through Private Placement

Rhea-AI Summary

Sky Gold Corp (SRKZF) has announced a non-brokered private placement offering of up to 20,000,000 flow-through shares priced at $0.035 per share, aiming to raise up to $700,000 in gross proceeds. The flow-through shares will provide tax benefits to holders under the Income Tax Act (Canada). The funds will be used to advance the Company's Consolidated Shebandowan project in Northwestern Ontario. The company plans a spring exploration program including geological mapping, prospecting, and rock sampling of areas with anomalous particulate gold grains, followed by trenching and diamond drilling expected in late summer to early fall 2025. The private placement remains subject to TSX Venture Exchange approval.

Positive

• Secured potential funding of up to $700,000 through flow-through shares offering
• Clear exploration program planned with geological mapping, sampling, and future diamond drilling
• Tax benefits available to flow-through share investors

Negative

• Share dilution through issuance of 20,000,000 new shares
• Offering subject to TSX Venture Exchange approval

VANCOUVER, BC / ACCESS Newswire / May 9, 2025 / SKY GOLD CORP. ("Sky" or the "Company") (TSX.V:SKYG)(OTC PINK:SRKZF) announces it has arranged a non-brokered private placement of up to 20,000,000 flow-through shares at a price of $0.035 per FT Share (the "FT Offering"), for aggregate gross proceeds of up to $700,000.

The FT shares will entitle the holder to receive the tax benefits applicable to flow-through shares, in accordance with provisions of the Income Tax Act (Canada). The proceeds from the sale of the FT Units will be used to advance the Company's Consolidated Shebandowan project in Northwestern Ontario. For more information on the project please visit https://www.skygoldcorp.com/shebandowan.

Finders' fees may be payable. The private placement is subject to approval by the TSX Venture Exchange.

CONSOLIDATED SHEBANDOWAN UPCOMING SPRING EXPLORATION PROGRAM:

During the upcoming field season this spring, geological mapping and prospecting will be completed with a priority placed on rock sampling and mapping of the target areas containing anomalous particulate gold grains. This will be followed up by a subsequent program of trenching and diamond drilling, anticipated for late summer to early fall of 2025.

QUALIFIED PERSON:

Sky Gold Corp.'s disclosure of a technical or scientific nature in this news release has been reviewed and approved by Don Hoy, P. Geo., who serves as a qualified person under the definition of National Instrument 43-101.

ON BEHALF OF THE BOARD
Mike England
CEO, PRESIDENT & DIRECTOR

FOR FURTHER INFORMATION PLEASE CONTACT
Tel: 1-604-683-3995
Toll Free: 1-888-945-4770

Neither the 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.

Forward-Looking Statements

Certain statements in this release are forward-looking statements, which reflect the expectations of management regarding the matters described herein. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations, or intentions regarding the future. Such statements are subject to risks and uncertainties that may cause actual results, performance, or developments to differ materially from those contained in the statements, including with respect to the completion of the Consolidation or the identification or acquisition of additional mineral assets. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them. These forward-looking statements reflect management's current views and are based on certain expectations, estimates and assumptions which may prove to be incorrect. A number of risks and uncertainties could cause our actual results to differ materially from those expressed or implied by the forward-looking statements, including factors beyond the Company's control. These forward-looking statements are made as of the date of this news release.

SOURCE: Sky Gold Corp.

View the original press release on ACCESS Newswire

FAQ

What is the size and price of Sky Gold Corp's (SRKZF) flow-through share offering?

Sky Gold Corp is offering up to 20,000,000 flow-through shares at $0.035 per share, aiming to raise up to $700,000 in gross proceeds.

How will Sky Gold Corp (SRKZF) use the proceeds from the flow-through offering?

The proceeds will be used to advance the Company's Consolidated Shebandowan project in Northwestern Ontario.

What exploration activities does Sky Gold Corp (SRKZF) plan for the Shebandowan project in 2025?

Sky Gold plans geological mapping, prospecting, and rock sampling in spring 2025, followed by trenching and diamond drilling in late summer to early fall.

What tax benefits do Sky Gold Corp's (SRKZF) flow-through shares offer?

The flow-through shares entitle holders to receive tax benefits in accordance with provisions of the Income Tax Act (Canada).