Vancouver, BC – Gainey Capital Corp. (TSXV: GNC) (OTC: GNYPF) (“Gainey” or the “Company”) announces that the Company has arranged a non-brokered private placement (the “Offering”) of up to 20,833,333 units (“Units”) in the capital of the Company at a price of $0.12 per Unit for gross proceeds of up to $2,500,000.
Each Unit will be comprised of one common share and one common share purchase warrant (“Warrant”), each Warrant entitling the holder to purchase one additional common share of the Company at a price of $0.24 per share for a period of 24 months. All securities issued in connection with the Offering will be subject to a statutory four-month plus one-day hold period. Finders’ fees may be paid in connection with this Offering.
The proceeds of the Offering will be used for exploration activites at the Company’s 100%-owned El Colomo project located in the states of Nayarit and Durango, western Mexico. The El Colomo project hosts 23 gold/silver mineralized zones which the Company continues to explore with drilling and geophysical testing. Detailed drill results from the La Nueva Victoria zone, one of the 23 El Colomo zones, are available in Gainey press releases dated September 28, 2016 and October 3, 2016, available at www.sedar.com.