Opawica Explorations Inc. Closes Financing and Property Transaction
300 – 555 W. Georgia Street, Randall Building, Vancouver, BC Canada V6B 1Z6 T (604)681-3170, F (604)681-3552, [email protected] www.opawica.com
OPAWICA EXPLORATIONS INC. CLOSES FINANCING AND PROPERTY TRANSACTION
Vancouver, B.C. – June 27, 2016 – Opawica Explorations Inc. (the “Company”) (TSX.V: OPW) announces that it has closed the purchase and sale agreement dated February 25, 2016 between the Company and Investissements Gema Inc. (“Gema”), whereby the Company will acquire a 100% interest, subject to retained royalties, in the Bazooka, McWatters and Arrowhead claims located in northern Quebec, Canada (the “Properties”) (the “Property Transaction”). Consideration for the Property Transaction is 3,870,000 common shares of the Company, of which 1,000,000 of the shares are issued to RT Minerals Corp., a company with common directors to the Company. As a result of the 2,870,000 shares issued to Gema for the Property Transaction, Gema has acquired 13.33% ownership of the Company. The shares are subject to a hold period expiring October 28, 2016.
As a condition to completing the Property Transaction, the Company has closed a unit private placement to raise gross proceeds of $600,000 (the “Offering”). The Company raised $550,000 through the sale of 550 mixed flow-through and non flow-through units priced at $1,000 (the “FT/NFT Units”) and $50,000 through the sale of 1,000,000 non flow-through units priced at $0.05 (the “NFT Units”). Each FT/NFT Unit consists of 11,667 flow-through common shares, 8,333 non flow-through common shares, and 20,000 share purchase warrants exercisable at a price of $0.06 for a term of five years. The FT/NFT Unit pricing is equivalent to $0.05 per share and a whole warrant attached to each share that is exercisable into one further common share at a price of $0.06 for a term of five years. Each NFT Unit consists of one common share and one share purchase warrant exercisable at a price of $0.06 for a term of five years. Insiders purchased 17 FT/NFT Units which is equivalent to 340,000 shares and 340,000 warrants. All securities issued in the Offering are subject to a hold period expiring October 28, 2016.
The proceeds from the sale of the flow-through portion of the Offering are $320,843 and will be used towards recommended exploration programs on the Bazooka property, and on exploration programs thereafter as recommended by the Company’s Qualified Persons. The proceeds from the sale of the non flow-through portion of the Offering will be used for general working capital.
The Property Transaction and Offering were detailed in news releases dated December 22, 2015, February 25 and 26, 2016 and May 12, 2016.
The Company also announces the appointment of Mr. Philippe Havard, Ing. Jr., to the Board of Directors. Mr. Havard is a shareholder of Gema.
FOR FURTHER INFORMATION CONTACT:
Fred Kiernicki President and Chief Executive Officer Opawica Explorations Inc.
Telephone: 604-681-3170 Fax: 604-681-3552
Neither the TSX Venture Exchange nor its Regulation Service Provider (as the term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy of accuracy of this news release.