Newlox completes $1.22M final closing of financing

Jan 2, 2021

2020-12-31 21:16 ET – News Release

Mr. Ryan Jackson reports

NEWLOX GOLD CLOSES $4 MILLION DEBENTURE OFFERING

Newlox Gold Ventures Corp. has closed a second and final round of its unsecured non-brokered convertible debenture financing for gross proceeds of $1,221,500 in addition to $2,779,000 announced on Dec. 18, 2020, for total combined proceeds of $4,000,500.

The debenture’s principal amount will become due in two years from the closing date and will carry an interest rate of 10 per cent per annum, with interest payable semi-annually. Principal and any accrued interest are convertible at the option of the investor at a conversion price of 15 cents per common share from the closing date until the day before maturity. On maturity, the company will have the option to pay the principal and any accrued interest in cash or shares at the conversion price.

As part of the second closing, the company has issued 8,143,334 warrants. Each warrant entitles the holder to purchase one common share of the company at an exercise price of 25 cents for two years from the closing of the offering. Fully exercised, this would result in proceeds to the company of up to $2,035,833.50.

All securities issued pursuant to the offering are subject to a four-month-and-one-day hold period under applicable Canadian securities laws. The company may pay finders’ fees of up to 8 per cent and issue finders’ warrants of up to 8 per cent as part of the offering.

A message from Ryan Jackson, president and chief executive officer

“Closing this offering in two stages is a significant event for Newlox Gold, placing the company on a firm financial footing for the new year. We are gratified that the offering was significantly oversubscribed.

“The Newlox Gold team anticipates 2021 to be a milestone year for the company, with its first processing plant slated for full-scale operation and a second processing plant expected to become operational. We believe that Newlox Gold will be defined in the coming year as a rapidly growing gold company.”

Technical disclaimer

The company advises it is not basing any decision to produce on a feasibility study of reserves, demonstrating the economic and technical viability of the project, and also advises there is increased uncertainty and specific economic and technical risks of failure associated with any production decision. Stewart A. Jackson, PhD, PGeo, a qualified person within the meaning of National Instrument 43-101, has prepared, supervised the preparation of and approved the contents of this news release.

We seek Safe Harbor.