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Benz Successfully Completes C$10 Million Private Placement

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Benz Successfully Completes C$10 Million Private Placement

 

 

 

 

 

HIGHLIGHTS

  • C$10 million raised with the issue of 9,090,909 shares
  • Proceeds will be used to fund exploration at the Eastmain Project, Quebec

 

Benz Mining Corp. (TSX-V: BZ) (ASX: BNZ) is pleased to advise that has raised C$10 million (before costs) from the placement of 9,090,909 shares at a price of C$1.10 per share which represents an 80% premium to the last closing price of Benz shares on the TSXV on 27 August 2021 of C$0.61.

 

The Company was able to issue the Placement shares at a premium as they were issued as Canadian charity flow-through shares, which provides tax incentives to those investors for expenditures that qualify as flow-through mining expenditures under the Income Tax Act (Canada) (Act).

 

The term “flow-through share” is a defined term in the Act and is not a special type of share under corporate law. In this case, flow-through share refers to an ordinary share that will be issued by the Company to the investor under a written agreement with the investor whereby the Company agrees to incur flow-through mining expenditure, and to renounce tax losses associated with that expenditure to the investor. If the Company and the investor comply with the rules of the Act, the investor will be entitled to deduct the amount renounced in computing the investor’s income for Canadian income tax purposes and, as a result, the flow-through shares are issued at a higher price.

 

The issue of 9,090,909 shares under the Placement will utilise the Company’s issuance capacity under ASX Listing Rule 7.1. The shares issued under the Placement will be subject to a four month hold period in Canada.

 

The gross proceeds received by the Company will be used to fund exploration on the Company’s Eastmain Project in Quebec by 31 December 2022 and renounce such expenditures to the investors effective 31 December 2021.

 

The Placement was facilitated by Canadian flow-through share dealer, Peartree Securities Inc, and Peloton Capital Pty Ltd. The Company agreed to pay finders fees of 6% cash and 909,090 broker warrants under the Placement, with each broker warrant exercisable for one share at a price of C$0.65 for a period of two years from the date of issuance.

 

About Benz Mining Corp.

 

Benz Mining Corp. brings together an experienced team of geoscientists and finance professionals with a focused strategy to acquire and develop mineral projects with an emphasis on safe, low risk jurisdictions favourable to mining development. Benz is earning a 100% interest in the former producing high grade Eastmain gold mine, Ruby Hill West and Ruby Hill East projects in Quebec.

 

The Eastmain Gold Project is situated within the Upper Eastmain Greenstone Belt in Quebec, Canada and currently hosts a NI 43-101 and JORC (2012) compliant resource of 376,000oz at 7.9gpt gold. The existing gold mineralization is associated with 15-20% semi-massive to massive pyrrhotite, pyrite and chalcopyrite making it amenable to detection by electromagnetics. Several gold mineralization occurrences have been identified by previous explorers over a 10km long zone along strike from the Eastmain Mine with very limited testing outside the existing resource area.

 

Posted August 31, 2021

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