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Ascendant Resources Closes C$3.16 Million Non-Brokered Private Placement

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Ascendant Resources Closes C$3.16 Million Non-Brokered Private Placement

 

 

 

 

 

Ascendant Resources Inc. (TSX: ASND) is pleased to announce that it has closed its previously disclosed non-brokered private placement for aggregate gross proceeds of approximately C$3.16 million. The Offering consisted of the issuance of 13,149,665 units of the Company at a price of C$0.24 per Unit. Each Unit is comprised of one common share of the Company and one-half of one common share purchase warrant, with each Warrant exercisable to acquire one Common Share at a price of C$0.40 for a 24-month period following the closing date of the Offering. The Company intends to use the net proceeds from the Offering to advance the Lagoa Salgada project as well as for working capital and general corporate purposes.

 

Mark Brennan, Executive Chairman and Founder, commented “We are extremely pleased with the demand to participate in the Offering and the resulting increase from C$2 million to C$3.16 million. The proceeds will be beneficial in continuing to develop and unlock the value residing at Lagoa Salgada“.

 

Securities issued in connection with the Offering to persons subject to Canadian securities laws are subject to a hold period of four months and one day in accordance with applicable securities legislation. Certain other securities were issued in connection with the Offering to persons in offshore jurisdictions pursuant to Ontario Securities Commission Rule 72-503 – Distributions Outside Canada and such securities are not subject to a statutory hold period.

In connection with the Offering, the Company paid certain arm’s length finders cash fees in the aggregate amount of C$39,560.

 

Insiders of the Company subscribed for a total of 100,000 Units for total gross proceeds of $24,000 under the Offering. Participation by insiders constitutes a related party transaction as defined under Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions. The issuance of securities to such related parties is exempt from the formal valuation requirements of section 5.4 of MI 61-101 pursuant to Subsection 5.5(b) of MI 61-101 and exempt from the minority shareholder approval requirements of section 5.6 of MI 61-101 pursuant to subsection 5.7(b) of MI 61-101 as the purchase of securities does not exceed 25% of the Company’s market capitalization. The Company is relying on exemptions from the formal valuation and minority shareholder approval requirements provided under sections 5.5(a) and 5.7(1)(a) of 61-101. The Company did not file a material change report 21 days prior to the closing of the Offering as the details of the participation of insiders of the Company had not been confirmed at that time.

 

About Ascendant Resources Inc.

 

Ascendant is a Toronto-based mining company focused on the exploration and development of the highly prospective Lagoa Salgada VMS project located on the prolific Iberian Pyrite Belt in Portugal. Through focused exploration and aggressive development plans, the Company aims to unlock the inherent potential of the project, maximizing value creation for shareholders.

 

Lagoa Salgada contains over 10.33 million tonnes of Measured and Indicated Resources @ 9.06 % ZnEq and 2.50 million tonnes of Inferred Resources @ 5.93 % ZnEq in the North Zone; and 4.42 million tones of Indicated Resources @ 1.50 % CuEq and 10.83 million tonnes of Inferred resources @ 1.35 % CuEq in the South Zone at Venda Nova. The deposit demonstrates typical mineralization characteristics of Iberian Pyrite Belt VMS deposits containing zinc, copper, lead, tin, silver and gold. Extensive exploration upside potential lies both near deposit and at prospective step-out targets across the large 10,700ha property concession. The project also demonstrates compelling economics with scalability for future resource growth in the results of the Preliminary Economic Assessment. Located just 80km from Lisbon, Lagoa Salgada is easily accessible by road and surrounded by exceptional Infrastructure. Ascendant holds a 21.25% interest in the Lagoa Salgada project through its 25% position in Redcorp – Empreendimentos Mineiros, Lda, (“Redcorp”) and has an earn-in opportunity to increase its interest in the project to 80%. Mineral & Financial Investments Limited owns the additional 75% of Redcorp. The remaining 15% of the project is held by Empresa de Desenvolvimento Mineiro, S.A., a Portuguese Government owned company supporting the strategic development of the country’s mining sector. The Company’s interest in the Lagoa Salgada project offers a low-cost entry to a potentially significant exploration and development opportunity, already demonstrating its mineable scale.

 

Posted November 1, 2021

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