News Article

E2Gold Announces Strategic Investment by Kinross Gold

“We are thrilled to have the support of a world-class mining company such as Kinross. Their commitment as a strategic investor is a testament to the quality of the Hawkins project and the work we’ve completed on the project to date.”

TORONTO, ONTARIO, May 31, 2022 – E2Gold Inc. (TSXV: ETU|OTCQB: ETUGF) (the “Company” or “E2Gold”) is pleased to announce that Kinross Gold Corporation (“Kinross”) has expressed its intention to support the Company’s activities at the district-scale Hawkins Gold Project in north central Ontario by acquiring such number of units (“Units”) of E2Gold in connection with a proposed private placement by the Company (the “Offering”) which will result in Kinross holding approximately 9.9% of the issued and outstanding common shares of the Company immediately following the closing of the Offering.

Pursuant to the Offering, the Company will issue Units at a price of C$0.06 per Unit, special “flow-through” units (“Special FT Units”) at a price of C$0.085 per Special FT Unit and “flow-through” units (“FT Units”) at a price of C$0.07 per FT Unit in any combination to raise aggregate gross proceeds of up to C$3,000,000. The gross proceeds raised from the sale of Special FT Units and FT Units will be used principally for exploration at the Hawkins Gold Project where the Company is conducting surface exploration in anticipation of a fall-time drill program. Funding will also go towards a small initial drill program at the Band Ore project west of Thunder Bay.

Dr. Eric Owens, CEO, commented, “We are thrilled to have the support of a world-class mining company such as Kinross. Their commitment as a strategic investor is a testament to the quality of the Hawkins project and the work we’ve completed on the project to date.” Dr. Owens added “This is another significant milestone in our short history as a publicly traded company.”

Each Unit will be comprised of one common share of the Company (a “Common Share”) and one half of one Common Share purchase warrant (each whole such Common Share purchase warrant, a “Warrant”); and each Special FT Unit and each FT Unit will be comprised of one Common Share that qualifies as a “flow-through share” as defined in subsection 66(15) of the Income Tax Act (Canada) (each, a “FT Share”) and one-half of one Warrant.  Each whole Warrant shall be exercisable to acquire one additional Common Share (which shall not be a flow-through share) at an exercise price of C$0.15 per Warrant for a period of 24 months from the date of issuance thereof.

An amount equal to the gross proceeds from the sale of the Special FT Units and FT Units will be used for expenditures which qualify as Canadian exploration expenses (“CEE”) and “flow-through mining expenditures” (within the meaning of the Income Tax Act (Canada)). The Company will renounce such CEE with an effective date of no later than December 31, 2022. E2Gold will use funds raised from the sale of the Units on non-flow-through eligible project expenses as well as for working capital purposes and exploration expenditures.

In connection with the Offering, the Company may issue to eligible registrants such number of broker warrants (“Broker Warrants”) as is equal to up to 6% of the aggregate number of Units, Special FT Units and FT Units issued in the Offering.  Each Broker Warrant will entitle the holder thereof to acquire one Common Share at an exercise price of C$0.15 for a period of two years.

The Offering and related matters remain subject to various closing conditions, including the approval of the TSX Venture Exchange. The Offering is presently scheduled to close on or about June 23, 2022.

 

ABOUT E2GOLD INC.

E2Gold Inc. is a Canadian gold exploration company with current focus on its large flagship property, the 80 km long Hawkins Gold Project, which covers seven townships in north-central Ontario, about 140 km east of the Hemlo Gold Mine, and 75 km north of the Magino and Island Gold Mines. The property is anchored by the McKinnon Zone Inferred Resource of 6.2 Mt grading 1.65 g/t Au, for 328,800 ounces of gold.  E2Gold is committed to increasing shareholder value through the development of targets at Hawkins and future potential of the Band-Ore property.

For further information please contact:

Jeff Pritchard

Investor Relations

Tel. (212) 361-9342

Email: Jeff.Pritchard@E2Gold.ca

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward Looking Statements – Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties, including the risk that the Offering may not be completed on the terms currently proposed or at all. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of E2Gold, including with respect to the potential size and composition of the Offering and the receipt of all regulatory approvals. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.