Onyx Arranges $3 Million Investment by Strategic Investor and Concurrent $5 Million Bought Deal Financing

Core Viewpoint - Onyx Gold Corp. has announced a $3 million investment from a strategic investor and a concurrent $5 million bought deal financing, aiming to raise a total of approximately $8 million for exploration and corporate purposes [2][3][6]. Group 1: Financing Details - The company has entered into an agreement for a bought deal private placement of 5,000,000 flow-through shares at a price of $1.00 per share, generating gross proceeds of $5 million [2]. - Concurrently, a non-brokered private placement with a strategic investor will involve 3,490,343 common shares at a price of $0.85 per share, expected to yield approximately $3 million [3]. - The total expected gross proceeds from both offerings are approximately $8 million [3]. Group 2: Strategic Investor Impact - The strategic investor's $3 million investment will increase their total holdings to 9.9% of the company's issued and outstanding shares on a pro-forma basis [4]. Group 3: Use of Proceeds - The proceeds from the flow-through shares will be used to incur eligible Canadian exploration expenses related to the company's projects in Ontario and Yukon, with a commitment to renounce these expenditures to subscribers by December 31, 2025 [5]. - The net proceeds from the concurrent private placement will be allocated for exploration of mineral properties and general corporate purposes [6]. Group 4: Regulatory and Compliance - The offerings are subject to regulatory approvals, including conditional approval from the TSX Venture Exchange, and are expected to close around May 22, 2025 [6]. - The flow-through shares will be offered under the Listed Issuer Financing Exemption, while the non-flow-through shares will be subject to a hold period of four months and one day [7][8]. Group 5: Company Overview - Onyx Gold is focused on exploration in established Canadian mining jurisdictions, with significant assets in Timmins, Ontario, and Yukon Territory, including high-grade gold properties [11]. - The company aims to create shareholder value through responsible mineral exploration and effective capital allocation [11].