Edgemont Gold Corp. Announces Non-Brokered Private Placement of Units

Edgemont Gold Corp. (CSE: EDGM, FRA: EG8) has announced a non-brokered private placement of units, raising gross proceeds of $703,500. The company is offering 2,100,000 flow-through units at $0.335 per unit, with each unit comprised of one flow-through common share and one half of a common share purchase warrant. The proceeds from this private placement will be used to fund the drill program scheduled to start in July at Edgemont's Dungate copper-gold porphyry project near Houston, B.C.



The private placement is subject to a four-month hold period, expiring on October 24, 2021. The issuance of new shares through the private placement will result in dilution for existing shareholders. However, the increased liquidity and funding for exploration could lead to a more stable or even higher share price, depending on the success of the exploration program and market conditions.

The market capitalization of Edgemont will increase as a result of the private placement, as the company will have more shares outstanding and a higher cash balance. The market capitalization can be calculated as the share price multiplied by the number of outstanding shares. Assuming the share price remains constant, the market capitalization will increase by approximately $703,500 (the gross proceeds from the private placement) after the placement is completed and the shares are issued.

In conclusion, Edgemont Gold Corp.'s non-brokered private placement of units will have both positive and negative implications for the company's share price and market capitalization. While the issuance of new shares will result in dilution, the increased liquidity and funding for exploration could lead to a more stable or even higher share price, depending on the success of the exploration program and market conditions. The market capitalization will increase as a result of the private placement, assuming the share price remains constant. Investors should closely monitor the company's exploration efforts and market conditions to assess the potential impact on Edgemont's share price and market capitalization.