GFG announces warrant acceleration

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SASKATOON, Saskatchewan, November 7, 2024 (GLOBE NEWSWIRE) — GFG Resources Inc. (TSXV: GFG) (OTCQB: GFGSF) (“ GFG ‘or the’ Company “) today announces that it is electing to extend the expiration date of outstanding stock purchase warrants (” Warrants “) of the Company, originally issued on October 6, 2022, March 21, 2023 and April 19, 2024. In connection with the acceleration of warrants, Alamos Gold Inc. (“Alamos”) ( TSX: AGI; NYSE:AGI ) has exercised 5,343,302 warrants for a total amount of C$694,629. In addition to Alamos, a large majority of warrant holders have confirmed their intention to exercise.

In accordance with the terms of the Warrants, the Company may accelerate the expiration date of the Warrants if the closing price of the Company’s common stock on the TSX Venture Exchange is equal to or greater than C$0.18 for 10 consecutive trading days (the “ Acceleration period “), until the date 30 days after the distribution of a press release announcing the acceleration. The Company hereby gives notice of the Acceleration Period covering the 10 trading days ending on November 1, 2024 and that the Company is exercising its right to accelerate the expiration date of the Warrants until 5:00 PM (Toronto time) on December 9, 2024 (the ” Expedited expiration date “). Any Warrants not exercised after the Accelerated Expiration Date will expire and become ineffective.

As of November 7, 2024, a total of 23,989,553 Warrants remain outstanding. Accordingly, if all outstanding Warrants are exercised, the gross proceeds to the Company will be approximately C$3.9 million. There is no assurance that all Warrants will be exercised. Holders may exercise the Warrants prior to the Accelerated Expiration Date by following the process set out in the Warrant Certificates.

“This is an exciting opportunity for GFG,” said Brian Skanderbeg, president and CEO of GFG. “The exercise of warrants could generate nearly C$4.0 million in capital, providing us with a strong financial foundation to aggressively advance drilling programs at both the historic Aljo Gold Mine and the new Muskego Gold Target. We are confident that these programs will expand Aljo’s business. gold system and potentially lead to a major gold discovery in Muskego, with the ultimate goal of finding the next gold mine in the productive and infrastructure-rich Timmins Gold District.

Prior to the closing of Alamos’ warrant exercise (the “ Transaction “), Alamos owned 23,809,004 common shares of GFG, representing a share percentage of approximately 9.8%, on an undiluted basis. Following the completion of the transaction, Alamos will beneficially own, or control and exercise control over, 29,152,306 common shares or 11.8% of the common shares of GFG, on an undiluted basis (based on 247,217,181 outstanding common shares shares on November 7, 2024) and no warrants. Alamos acquired the common stock for investment purposes, which will be evaluated and may be increased or decreased from time to time at Alamos’ discretion. A copy of Alamos’ early warning report will be available on the SEDAR+ website at or can be requested by contacting Scott K. Parsons, Senior Vice President, Corporate Development and Investor Relations, at…, 416-368- 9932 (ext. 5439) or by mail at Brookfield Place, 181 Bay Street, Suite 3910, Toronto, Ontario M5J 2T3.

About GFG Resources Inc.
GFG is a North American precious metals exploration company focused on district-level gold projects in the premier mining jurisdictions of Ontario and Wyoming. In Ontario, the company operates three gold projects, each large and promising gold projects in the prolific Timmins gold district, Ontario, Canada. The projects have similar geological conditions where most of the gold deposits have been found at the Timmins Gold Camp, which has produced more than 70 million ounces of gold. The company also owns 100% of the Rattlesnake Hills Gold Project (“ RSH” ), a district-scale gold exploration project located approximately 100 km southwest of Casper, Wyoming, USA. On August 15, 2024, the company signed a definitive agreement with Patriot Gold Vault Ltd. (“ Patriot ”). Under the terms of the agreement, Patriot will purchase RSH by paying GFG a total consideration of approximately C$3.3 million.

For more information please contact:
Brian Skanderbeg, president and CEO
or
Marc Lepage, vice president, business development
Phone: (306) 931-0930
Email: …
Website:

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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.

CAUTION REGARDING FORWARD-LOOKING INFORMATION

All statements, other than statements of historical fact, in this press release constitute “forward-looking information” within the meaning of applicable Canadian securities laws and “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 (hereinafter “forward-looking statements” named). Forward-looking statements include, but are not limited to, the Company’s future exploration plans with respect to its real estate interests and the timing thereof, the future nature of the projects, the future price of gold, the success of exploration activities and metallurgical testing work, which may affect timelines, currency fluctuations, requirements for additional capital, government regulation of exploration activities, environmental risks, unexpected recovery costs, ownership disputes or claims and limitations on insurance coverage. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as ‘plans’, ‘expects’ or ‘does not expect’, ‘expected’, ‘budget’, ‘scheduled’, ‘estimates’. ,“predicts”, “intends”, “anticipates” or “does not anticipate” or “believes”, or its negative connotations or variations of such words and phrases, or states that certain actions, events or results “may”, “could”, “would”, “will”, “might” or “will be taken”, “prevent” or “be achieved” or its negative connotation.

All forward-looking statements are based on various assumptions, including, without limitation, management’s expectations and beliefs, the assumed long-term price of gold, that the Company will obtain required permits and access to surface rights, the Company’s access to financing, appropriate equipment and sufficient labor, and that the political environment in Canada and the United States will continue to support the development of mining projects in Canada and the United States. In addition, the similarity or proximity of other gold deposits to the Company’s projects is not necessarily indicative of the geological setting, alteration and mineralization of the Rattlesnake Hills Gold Project, the Goldarm Property, the Pen Gold Project and the Dore Gold Project.

Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of GFG to be materially different from those expressed or implied by such forward-looking statements, including, but not limited to: actual results of ongoing exploration activities; environmental risks; future gold prices; operational risks; accidents, labor issues and other risks of mining; availability of capital, delays in obtaining government approvals or financing; and other risks and uncertainties. These risks and uncertainties and the additional risks described in the Company’s most recently filed annual and interim MD&A are not and should not be construed as exhaustive.

Although GFG has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. In addition, forward-looking statements are provided solely for the purpose of providing information about management’s current expectations and plans and to enable investors and others to better understand our operating environment. Accordingly, readers should not place undue reliance on forward-looking statements.

Forward-looking statements in this press release are made as of the date hereof and GFG assumes no obligation to update any forward-looking statements, except as required by applicable law.

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