On September 29, 2020, Contact Gold Corp. closed a public offering of 73,870,000 units at a price of $0.20 per unit for gross proceeds of approximately $14.77 million, which includes the partial exercise of the underwriters’ overallotment option. Each unit consisted of one share of common stock and one-half of one share purchase warrant of Contact Gold, with each warrant entitling the holder thereof to acquire one share at an exercise price of $0.27 until September 29, 2022.
Concurrently with the closing of the public offering, Contact Gold completed a private placement of 69,412,978 shares of common stock at a price of $0.195 per share for gross proceeds of approximately $13.54 million with Waterton Nevada Splitter, LLC. Together with certain proceeds of the public offering and the proceeds of the concurrent private placement, Contact Gold redeemed all of the issued and outstanding shares of preferred stock held by Waterton.
Cassels acted for Contact Gold with a deal team that included Jay Goldman, Nancy Choi, David Gardos and David Singh (Securities and Mining) and Chris Norton and Tera Li Parizeau (Tax).