Snowline Gold Corp.

With its 2024 exploration program right around the corner, Snowline's recent investment is a welcome bolstering of the company's treasury and overall exploration efforts.

Leading Snowline shareholder exercises warrants early, fortifies company's treasury for exploration.

Snowline Gold Corp. April 1 announced that significant shareholder Ana Maria Cox de Gubbins elected to exercise five million warrants early, earning the company C$12.5 million (US$9.2 million) and increasing Cox' stake to 10.6% of Snowline's issued shares.

"The ongoing support of Ms. Cox from our early exploration efforts in 2021 through to today has been a key component of Snowline's strength in a difficult capital markets landscape," said Snowline Gold CEO Scott Berdahl. "We are grateful for the support and for this display of confidence through early exercise of these warrants."

Cox is a staunch supporter of Snowline. According to Yahoo Finance, she was considered the single largest purchaser of the Yukon-focused gold exploration company in 2023, holding roughly 11.12 million shares and owning 7.68% of the company.

On March 28, Cox acquired five million common shares of Snowline by exercising common share purchase warrants at C$2.50 per warrant, totaling C$12.5 million (US$9.2 million).

This increased her ownership to 16.12 million common shares or approximately 10.6% of the issued and outstanding shares.

"I would like to extend my congratulations and thanks to the Snowline team for their efforts and excellent work in building significant shareholder value," said Cox. "We have had confidence in the Berdahl family's initial exploration ideas for this area since before the Valley discovery was made. The results we have seen to date only strengthen our conviction in Snowline as a company and in the potential of the ground they explore."

With the influx of new capital to its coffers, Snowline is well-equipped for another year of exciting exploration in the Yukon.

"The funds strengthen Snowline's current treasury position to C$46.3 million, allowing us to focus on exploration and project advancement in what promises to be an exciting and potentially transformative 2024 field season," said Berdahl.

The company, however, plans to bolster its treasury with a C$25 million ($18.47 million) financing that involves issuing 3.21 million charity flow-through shares at C$7.80 per share.

Under a provision of Canada's Income Tax Act, flow-through financings allow exploration companies to transfer exploration expenses to individual Canadian investors that purchase the flow-through shares. The flow-through investors, in turn, can apply their portions of the exploration expense to reduce or eliminate tax liabilities.

Charity flow-through shares allow investors to donate a portion of the proceeds to a charity, which enhances the tax benefits.

This financing, underwritten by Cormark Securities Inc. and BMO Capital Markets, is slated to close on April 23.

In alignment with the terms associated with flow-through shares, Snowline will use the proceeds raised during this financing for exploration of its Yukon properties before the end of 2025.