Vancouver, BC, September 12, 2016 ‑ Harvest Gold Corporation (TSX.V: HVG) (the 'Company'). Further to its news releases of February 14, 2016 and April 7, 2016, the Company is pleased to announce the closing of the acquisition (the 'Acquisition') of Canasur Gold Ltd. ('Canasur') by way of a three cornered amalgamation under the British Columbia Business Corporations Act under the terms of an amalgamation agreement, dated July 27, 2016, among the Company, Canasur and a wholly-owned subsidiary of the Company incorporated for the purposes of the amalgamation (the 'Amalgamation Agreement').
In connection with the Acquisition the Company has issued a total of 16,822,539 shares in its capital stock (each, a 'Share') to the shareholders of Canasur, 11,797,008 of which are subject to restrictions on resale under the terms of the Amalgamation Agreement whereby 1/3 of such Shares are restricted from transfer for 3, 6 and 9 months respectively.
Concurrent with the closing of the Acquisition the Company has also closed the first tranche of a private placement (the 'InitialClosing') for gross proceeds of $1,186,200 resulting from the issuance of 23,724,000 units at $0.05 per unit, with each such unit comprised of a Share and a warrant (a 'Warrant') entitling the holder to acquire a further Share at $0.10 for a term of two years.
In connection with the Initial Closing the Company paid $63,640 and issued 1,272,800 brokers warrants (having the same terms as the Warrants) and 35,000 Shares on account of finder's fees.
All securities in connection with the Initial Closing are subject to a hold period expiring January 10, 2017.
Proceeds from the Initial Closing will be applied to the costs of the Acquisition, to the exploration of the Company's newly acquired mineral properties in Suriname and for general working capital.
As a result of the closing of the Acquisition, the Company anticipates that trading in the Company's shares on the TSX Venture Exchange will resume Wednesday September 14, 2016.
ON BEHALF OF THE BOARD OF DIRECTORS
Rick Mark,
CEO
Harvest Gold Corporation
For more information please contact:
Rick Mark or Jan Urata
@ 604.682.2928 or [email protected]
Neither 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.