Major Precious Metals Corp. (CSE:SIZE) (OTC:SIZYF) (FRANKFURT:3EZ) is pleased to announce that it has closed a non-brokered private placement of 24,285,715 units of the Company at a price of $0.35 per Unit for gross proceeds of $8,500,000.25. Each Unit consists of one common share of the Company and one-half of one transferable Common Share purchase warrant. Each Warrant entitles the holder thereof to purchase one (1) additional Common Share for a period of two years from closing at a price of $0.70 per Common Share. In the event that the Common Shares have a closing price on the Canadian Securities Exchange (or such other exchange on which the Common Shares may be traded at such time) of $1.20 or greater per Common Share for a period of ten consecutive trading days at any time from the closing of the Private Placement, the Company may accelerate the expiry date of the Warrants by giving notice to the holders thereof (by disseminating a news release advising of the acceleration of the expiry date of the Warrants) and, in such case, the Warrants will expire on the thirtieth day after the date of such notice.
The Company intends to use the net proceeds from the Private Placement in support of a large diamond drilling campaign already underway on its Skaergaard Project in eastern Greenland. The drilling program is expected to begin within the next few weeks, and mobilization is well underway with personnel already stationed in Greenland. Drilling crew, equipment and logistical support is in place and a large commercial support vessel will soon be on station to provide housing and a base for helicopter transport services. The Company is developing a globally significant precious metal deposit (palladium, platinum, and gold) with 5.51 Moz contained PdEq ounces in the Indicated Resource category and 14.4 Moz contained PdEq ounces in the Inferred Resource category, as described in the Company’s NI 43-101 technical report on the Skaergaard Project dated May 25, 2021.
Finder’s fees of $340,851 cash and 949,860 Warrants have been paid in connection with the Private Placement to qualified parties. The Warrants issued to the finders have the same terms as noted above. One Director of the Company participated in the Private Placement and will acquire, directly or indirectly, 285,714 Units. This transaction is exempt from the valuation and minority shareholder approval requirements of Multilateral Instrument 61-101 (“MI 61-101“) by virtue of the exemptions contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101 in that the fair market value of the consideration for the securities of the Company to be issued to the Insiders do not exceed 25% of its market capitalization.
All securities issued are subject to a statutory four-month and one day hold period from the date of issuance pursuant to applicable securities laws of Canada.
This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
Qualified Person Statement
All scientific and technical information contained in this news release was prepared and approved by Paul Ténière, P.Geo., President of Major Precious Metals Corp, who is a Qualified Person as defined in NI 43-101.
About Major Precious Metals Corp.
Major Precious Metals is a Canadian junior mining company listed on the Canadian Securities Exchange The Company’s flagship project is the Skaergaard Project in Greenland containing one of the largest palladium and gold deposits outside the major PGM producing areas of Russia and South Africa. The Company is focused on accelerating the progress of the Skaergaard Project along the Mine Development Cycle and has recently initiated a further major work program of drilling and economic evaluation.
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We acknowledge the [financial] support of the Government of Canada.