Tectonic Metals Inc. (TSX-V: TECT) announced that the Company closed the non-brokered private placement financing previously announced on June 2, 2020, by issuing 24,615,500 units for aggregate gross proceeds of C$4,923,100.
Tectonic’s President & CEO, Tony Reda, commented, “I am humbled by the overwhelming interest in our company and honoured to be welcoming new and existing shareholders into this oversubscribed financing. With a strong treasury, we are well-positioned financially and look forward to a very active and exciting 2020 field season as we embark on two monumental drill programs at our Tibbs and Seventymile Projects.”
Each unit is comprised of one common share of Tectonic and one-half common share purchase warrant. Each Warrant is exercisable for a common share at an exercise price of C$0.40 and expires June 30, 2022.
The Warrants are subject to an acceleration clause whereby if the volume-weighted average trading price of Tectonic’s common shares on the TSXV Venture Exchange is C$0.56 or greater for a period of ten consecutive trading days, Tectonic has the right to accelerate the expiry date of the Warrants to 30 days from the date of issuance of a news release by Tectonic announcing the accelerated exercise period.
A portion of the Offering is considered a related party transaction under Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”) as 500,000 Units were issued to a director of the Company. The Company relied on exemptions from the formal valuation and minority shareholder approval requirements provided under sections 5.5(1) and 5.7(a) of MI 61-101 on the basis that Mel Benson’s participation in the Offering did not exceed 25% of the fair market value of the Company’s market capitalization.
The Company paid aggregate finders’ fees of C$194,826 and issued 956,130 warrants in connection with subscriptions from subscribers introduced to the Offering by Red Cloud Securities Inc., Amvest Capital Inc. (acting through Mann Mann Jensen Partners LP), Canaccord Genuity Corp., Haywood Securities Inc., Generic Capital Corporation, Intrynsyc Capital Corporation and select others. Each Finders Warrant is exercisable for a common share at an exercise price of C$0.20 and expires June 30, 2022.
The net proceeds of the Offering will be used to advance the Company’s Tibbs and Seventymile properties and for general working capital.
All securities issued under the Offering are subject to a four-month hold period. The Offering is subject to certain conditions, including, but not limited to, the receipt of all necessary approvals, including the final approval of the TSXV.
This news release does not constitute an offer to sell, solicitation or offer to buy nor shall there be any sale of any of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful, including any of the securities in the United States of America. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “1933 Act“) or any state securities laws and may not be offered or sold within the United States or to, or for account or benefit of, U.S. Persons (as defined in Regulation S under the 1933 Act) unless registered under the 1933 Act and applicable state securities laws, or an exemption from such registration requirements is available.
Tectonic Metals Inc. is a mineral exploration company created and operated by an experienced and well-respected technical and financial team with a track record of wealth creation for shareholders. Key members of the Tectonic team were involved with Kaminak Gold Corporation, the company that raised C$165 million to fund the acquisition, discovery and advancement of the Coffee Gold Project in the Yukon Territory through to the completion of a bankable feasibility study before selling the multi-million ounce gold project to Goldcorp Inc. (now Newmont Goldcorp) for C$520 million in 2016.
Tectonic is focused on the acquisition, exploration, discovery and development of mineral resources from district-scale projects in politically stable jurisdictions that have the potential to host world-class orebodies.
Tectonic believes that responsible mineral exploration and development can positively impact the communities in which the company lives and operates and is committed to early and ongoing community engagement, best practices in environmental stewardship and the development of a strong safety culture. Whether at home or at work, the Tectonic team is grounded on the following core values: passion, integrity, patience, focus, perseverance, honesty, fairness, accountability, respect and a play big mindset. The company works for its shareholders and is committed to creating value for them.
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