Allegiant Announces Closing Of $10.5M Financing with Kinross Gold as Lead Investor

Core Viewpoint - Allegiant Gold Ltd. has successfully closed a C$10.5 million private placement, primarily led by Kinross Gold Corporation, which increases Kinross's equity ownership in Allegiant to 9.9% on a partially diluted basis, enabling the company to advance its Eastside project over the next 2-3 years [1][4]. Financing Details - The Offering involved the issuance of 21,000,000 units at a price of C$0.50 per unit, with each unit comprising one common share and one-half of a common share purchase warrant [2]. - Each warrant allows the holder to acquire an additional common share at a price of C$0.70 for 18 months from issuance, with provisions for accelerated expiry if the share price exceeds CDN$1.00 for ten consecutive trading days [2][3]. Use of Proceeds - Proceeds from the Offering will fund Allegiant's multi-year development plan at the Eastside Project, including a comprehensive geophysics and mapping campaign, up to 20,000 meters of drilling, targeting new high-grade zones, and advancing towards future technical and economic milestones [6]. Financial Position - The financing positions Allegiant strongly for the next three years, with over $13 million in capital available to accelerate exploration and enhance resource quality [5][7]. - The 12-month hold period for securities issued reflects investor confidence and aims to create an equal footing for all investors, particularly U.S. investors [6]. Insider Participation - Certain insiders subscribed for a total of 97,300 units in the Offering, amounting to gross proceeds of $48,650, which is classified as a related party transaction [9]. Company Overview - Allegiant Gold owns three gold projects in Nevada, with the Eastside project being the flagship, hosting a large and expanding gold/silver resource [10].