Central Timmins Exploration Corp.  (TSX-V: CTEC) reports that it has closed the non-brokered private placement (see news releases dated July 14, 2020 and July 17, 2020) for gross proceeds of $3.5 million.

In closing the Private Placement, the Company issued 4.6 million non-flow-through units of the Company at a price of $0.50 per Unit for gross proceeds of $2.3 million and 2.0 million flow-through common shares in the capital of the Company at a price of $0.60 per FT Share for gross proceeds of $1.2 million.

Each Unit consists of one non-flow-through common share in the capital of the Company and one non-flow-through common share purchase warrant.  Each Warrant entitles the holder to purchase one additional non-flow-through common share in the capital of the Company at an exercise price of $0.75 per common share for a period of two years from the date of issue, provided that, if after four months from the date of issue, the closing price of the common shares of the Company on the Exchange is equal to or greater than $1.25 for a period of 10 consecutive trading days at any time prior to the Expiry Time, the Company will have the right to accelerate the Expiry Time of the Warrants by giving notice to the holders of the Warrants by news release or other form of notice permitted by the certificate representing the Warrants that the Warrants will expire at 4:30 p.m. (Vancouver time) on a date that is not less than 15 days from the date notice is given.

The gross proceeds of the offering of FT Shares will be used to fund exploration expenditures on the Silver Reef Property (see News Release of June 11, 2020), BAM Property (see News Release of July 2, 2020), Todd Creek Property (see News Release of July 9, 2020) and other Canadian Exploration Expenses that will qualify as “flow through mining expenditures” as defined in subsection 127(9) of the Income Tax Act (Canada), and “BC flow-through mining expenditures”, as defined in the Income Tax Act (British Columbia).  The proceeds of the offering of Units will be used to fund exploration expenditures and for general corporate purposes.

Private Placement

In connection with the Private Placement, the Company paid finder’s fees of $96,975 to Dundee Goodman Merchant Partners, Haywood Securities Inc., Odlum Brown Limited, Canaccord Genuity Corp. and Richardson GMP Ltd., representing 6% of the proceeds raised from subscriptions by certain placees.  The Offering is subject to final TSX Venture Exchange approval, and all securities issued pursuant to the Private Placement will be subject to a four-month hold period.  The securities offered pursuant to the Private Placement have not been and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of such Act.

Insiders of the Company purchased 270,000 Units and 448,748 FT Shares.  The issuance of Units and Flow-Through Shares to insiders is considered a related party transaction subject to Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions. The Company relied on exemptions from the formal valuation and minority shareholder approval requirements provided under sections 5.5(a) and 5.7(a) of Multilateral Instrument 61-101 on the basis that the participation in the private placement by the insiders did not exceed 25% of the fair market value of the Company’s market capitalization.  

About Central Timmins Exploration Corp.

CTEC is an early-stage Canadian junior exploration company focused on precious metals exploration and development.