Tectonic Metals announces non-brokered private placement financing to fund drill programmes
Published by Jessica Casey,
Global Mining Review,
Tectonic Metals Inc. has recently announced that the company has launched a non-brokered private placement financing of up to 15 million units (units) of securities at a price of CAN$0.20 per unit for aggregate gross proceeds of up to CAN$3 million (offering). Each unit is comprised of one common share of Tectonic and one-half common share purchase warrant (each whole warrant, a ‘Warrant’). Each whole Warrant will be exercisable for a common share at an exercise price of CAN$0.40 and will expire 2 years from the closing date of the private placement.
Tony Reda, President and CEO, said: "We are pleased to have the opportunity to bring in significant new institutional investor support to the Tectonic registry on the heels of the strategic investment by Doyon Ltd. The net proceeds from this placement will enable Tectonic to conduct two robust drill programmes this year. We are ecstatic to advance our exploration programme at Tibbs after our exciting results from last year's drill programme, which included 6.03 g/t Au over 28.95 m on a newly discovered structure approximately 35 km away from Northern Star's operating Pogo Mine. We are also chomping at the bit to drill test our Seventymile Project, which hosts a 40 km long underexplored greenstone belt that hasn't seen a drill hole in 20 years, despite some very interesting historical work."
The Warrants are subject to an acceleration clause whereby if the volume-weighted average trading price of Tectonic's common shares on the TSX Venture Exchange (TSXV) is CAN$0.56 or greater for a period of 10 consecutive trading days (whether or not trading occurs on all such days), Tectonic has the right to accelerate the expiry date of the Warrants to 30 daysfrom the date of issuance of a news release by Tectonic announcing the accelerated exercise period.
Finder's fees may be payable on a portion of the offering. Red Cloud Securities Inc. is acting as a finder in connection with the offering.
The net proceeds of the offering will be used to advance the company's Tibbs and Seventymile properties and for general working capital. Closing is subject to the conditional acceptance of the TSXV. All securities issuable under the offering will be subject to a four-month hold period from the date of closing.
Read the article online at: https://www.globalminingreview.com/exploration-development/03062020/tectonic-metals-announces-non-brokered-private-placement-financing-to-fund-drill-programmes/
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