Genius Metals Inc. (CSE: GENI) announced the closing of a non-brokered private placement offering for a gross proceeds of $1,000,000 and issued 5,555,555 common share units of the Company at a price of at a price of $0.18 per Unit.
Each Unit will consist of one common share of the Company and one common share purchase warrant. Each Warrant will entitle the holder to purchase one additional Share at a price of $0.30 per share for a period of 18 months from the date of issuance.
The proceeds of the Offering will be used to incur mining expenditures on the Sakami and A-Lake projects and for the working capital of the Corporation.
In connection with the Offering, the Company paid an amount of $5,670 as finder’s fees to arm’s length third parties.
Any securities issued pursuant to the Offering will be subject to a hold period under applicable securities laws which will expire four months and one day from the date of their issuance.
Two directors of the Corporation have participated in the Private Placement and were issued an aggregate of 138,888 Common Share Units. Their participation in the Private Placement constitutes a “related party transaction” as defined under Regulation 61-101 respecting Protection of Minority Security Holders in Special Transactions. However, such participation is exempt from the valuation and minority shareholder approval requirements of 61-101 based on the fact that neither the fair market value of the Private Placement, nor the consideration paid by such insiders, exceeds 25% of the Corporation’s market capitalization. The Corporation did not file a material change report at least 21 days prior to the closing of the Private Placement as participation of the insiders had not been established at that time.
Sakami Exploration Program
Genius Metals will initiate a significant exploration campaign on its recently expanded Sakami property located in the James Bay Territory (Eeyou Itschee) some 75 km southeast of the village of Radisson. A group of ten people including geologists, technicians, helicopter pilot and journeymen will be housed on the newly refurbished North Sakami camp to carry out the work during the month of August. The exploration will consist of geological and structural mapping, rock sampling and channel sampling on gold-prospective zones. The aim of the program is to discover new gold mineralization on an Archean a volcano-plutonic terrane lying between the O3Mining’s La Grande Sud gold property and Quebec Precious Metals La Pointe gold project. Genius Metals just completed an airborne magnetic survey which, combined with one conducted in 2019, covers the entire Sakami property. The combined geophysical surveys and the results of past exploration work (i.e. mapping, sampling and geophysics) will serve as a basis to plan a systematic work program. Prospective gold-bearing zones associated with major structural or geological contacts are already established. Follow-up work is expected to be completed during the fall period and will be devoted to overburden stripping, high-resolution geophysics and channel sampling on the important gold prospective unearthed during the August campaign. The Corporation intends to pursue summer the exploration with a drilling campaign if the results acquired during the summer are conclusive.
Genius Metals’ employees and its contractors will operate under a COVID-19 management and mitigation plan to ensure the protection of all stakeholders which has been approved by the Cree Nation Government.
The mineralization hosted on adjacent and/or nearby properties is not necessarily indicative of mineralization present on the Company’s property.
The technical contents of this release were approved by Michel Boily, PhD, P.Geo; a Qualified Person as defined by National Instrument 43-101.
About Genius Metals
Genius Metals is a Canadian mineral exploration company focused on the acquisition, exploration and, if warranted, development of natural resource properties of merit in Canada.
Outcrop Silver & Gold Corporation (TSX-V: OCG) (OTCQX: OCGSF... READ MORE
Alphamin Resources Corp. (TSX-V:AFM) (JSE AltX:APH) a producer of... READ MORE
Highlights Significant Drill Intercepts High-grade lithium minera... READ MORE
Revival Gold Inc. (TSX-V: RVG) (OTCQX: RVLGF) is pleased to... READ MORE
Sabre Gold Mines Corp. (TSX: SGLD) (OTCQB: SGLDF) announces the s... READ MORE
We acknowledge the [financial] support of the Government of Canada.