Contact Gold Corp. announced a non-brokered private placement of up to 32,500,000 units at a price of CAD 0.02 per unit for gross proceeds of up to CAD 650,000 on January 31, 2023. Each unit is comprised of one common share and one common share purchase warrant, entitling the holder to acquire one common share for a period of 36 months from closing at a price of CAD 0.05.

The securities issued pursuant to the transaction will be subject to a four month and one day statutory hold period in Canada. The completion of the offering is subject to the receipt of all necessary approvals, including the conditional approval of the TSX venture exchange. In connection with the transaction, certain persons may be eligible to receive finder fees, payable in cash, representing up to 6% of the proceeds placed by such finders.

In addition, the company may also issue to certain finders such number of compensation warrants as is equal to 6% of the number of units sold pursuant to the Offering, at an exercise price of CAD 0.075 for a period of 24 months following the closing of the Offering. The closing of the Offering is expected to occur on or about February 28, 2023, and remains subject to the final approval of the TSXV.