StrikePoint Gold Inc. has closed its non-brokered private placement, raising gross proceeds of $2,000,000 through the issuance of 10,000,000 units at a price of $0.20 per unit.

Each unit consists of one common share and one-half of one common share purchase warrant. Each whole warrant allows the holder to purchase an additional share at an exercise price of $0.30 for a period of three years from the closing date. No finders' fees were incurred on the offering.

The proceeds will support costs associated with the company's previously announced acquisition of the Northumberland Gold Project from subsidiaries of Newmont Corporation, alongside a concurrent bought deal financing and a 10-for-1 share consolidation. Under the terms of that acquisition agreement, StrikePoint acquired the property for upfront cash consideration of US$70 million and is required to complete a feasibility study for the project. Completing the feasibility study will trigger a contingent cash payment of US$25 million within 120 days.

The Northumberland deposit holds an initial mineral resource estimate of 2.86 million ounces of gold equivalent in the indicated category and 1.57 million ounces of gold equivalent in the inferred category.

Funds from the private placement will also be allocated toward general working capital and the full repayment of $500,000 in non-interest-bearing, due-on-demand promissory notes held by various individuals, including non-arm's length parties.

Directors and officers subscribed for 2,081,750 units for a total of $416,350. These insider participations qualify as related party transactions under Multilateral Instrument 61-101, though the company is exempt from formal valuation and minority approval requirements because the transaction value remains below 25 percent of the company's market capitalization.

All securities issued under the private placement are subject to a four-month and one-day hold period. The closing remains conditional upon receiving final approval from the TSX Venture Exchange.

Read the full announcement: StrikePoint Announces Closing of C$2 Million Non-Brokered Private Placement