Element 29 Closes Oversubscribed Private Placement of $6.8 Million All dollars are in Canadian dollars
Element 29 Closes Oversubscribed Private
Placement of $6.8 Million
All dollars are in Canadian dollars unless otherwise noted
Vancouver, British Columbia--(Newsfile Corp. - December 14, 2021) - Element 29 Resources Inc.
(
TSXV: ECU
) (
OTCQB: EMTRF
)
("
Element 29
" or the "
Company
") is pleased to announce that the
Company has closed its oversubscribed, non-brokered private placement financing of 11,498,000
million Units (the "
Units
") at a price of $0.60 per Unit for aggregate gross proceeds of $6,898,800
million (the "
Offering
").
The Offering
Each Unit comprises one common share of Element 29 and one-half common share purchase warrant
(each whole warrant, a "
Warrant
"). Each whole Warrant is exercisable for a common share at an
exercise price of $0.85 and will expire December 14, 2024.
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 866,834
units were
issued to insiders of the Company. The Company relied on exemptions from the formal valuation and
minority shareholders approval requirements provided under sections 5.5(a) and 5.7(a) of MI 61-101 on
the basis that insiders participation in the Offering did not exceed 25% of the fair market value of the
Company's market capitalization.
In connection with the Offering and in accordance with the policies of the TSX Venture Exchange (the
"
TSXV
"), the Company paid Haywood Securities Inc. and Canaccord Genuity Corp. cash finder's fees
totalling $116,262.
The net proceeds of the Offering will be used for a planned 3,700 metre drill program at the Flor de
Cobre Project, the completion of a planned initial mineral resource estimate for the Elida Project, and
general working capital for the Company.
All securities issued under the Offering are subject to a four-month and one day 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.
Details of the Offering were previously announced on
November 18, 2021
and
December 6, 2021
.
Investor Relations Update
Element 29 is also pleased to announce that it has engaged San Diego Torrey Hills Capital, Inc.
("
Torrey Hills Capital
"), a Rancho Santa Fe, California based investor relations firm, to provide market
awareness and investor relations services to the Company, subject to acceptance by the TSXV.
Torrey Hills Capital is an investor and financial public relations firm specializing in small and microcap
companies. Torrey Hills Capital will increase awareness about Element 29 through its established
relationships with investment professionals, investment advisors, and money managers focused on the
microcap market space. This will allow the Company to build and maintain an informed investor
audience in both the U.S. and Canadian marketplaces.
Torrey Hills Capital has been engaged at a rate of US$5,000 per month for an initial term of six months.
After the initial term, the agreement will be automatically extended, subject to a 30-day termination notice
by either party. Element 29 has also agreed to a one-time grant of 200,000 incentive stock options (the
"
Options
") exercisable at a price of $0.59 per share for a period of three years. The Options will be
subject to the terms of the Company's stock option plan and will vest in accordance with the provisions
therein and the policies of the TSXV.
The appointment of Torrey Hills Capital as an investor relations consultant of Element 29 and the
granting of the Options remains subject to regulatory acceptance of applicable filings with the TSXV.
This news release does not constitute an offer to sell or a solicitation of an 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.
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined
in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or
accuracy of this press release.
About Element 29 Resources Inc.
Element 29 Resources Inc. is an emerging copper exploration and development company focused on
advancing its portfolio of Peruvian projects towards development in one of the world's lowest-risk mining
jurisdictions. Element 29's growth strategy is led by our strong board and management, who have a
proven track record of discovery and delivering significant value to our shareholders.
The Company's principal objective is to explore and develop its flagship Flor de Cobre porphyry Cu-Mo
project located in southern Perú, 26 kilometers ("
km
") southeast from Freeport-McMoRan's Cerro Verde
Cu-Mo mine. At the same time, the Company intends to build on its potential copper inventory with
continued exploration of its Flor de Cobre project as well as its remaining 22,000 hectares of mining
concessions in Perú, including the recently discovered Elida porphyry Cu-Mo-Ag system located in
central Perú and 85 km from the coast. Both projects are well located for future mine development and
will benefit from nearby infrastructure including roads, powerlines, ports, water, and a skilled workforce.
More information is available at
www.e29copper.com
.
For more information:
David Jan
Investor Relations
1-888-246-7881
Forward Looking Statements
This press release contains certain forward-looking information and forward-looking statements within
the meaning of applicable Canadian securities legislation (collectively, "
Forward-looking
Statements
"). All statements, other than statements of historical fact, constitute Forward-looking
Statements. Words such as "will", "intends", "proposed" and "expects" or similar expressions are
intended to identify Forward-looking Statements. Forward looking Statements in this press release
include statements related to the intended use of proceeds from the Offering, the receipt of any
regulatory approvals, including the final approval of the TSXV, the Company's resource properties, and
the Company's plans, focus and objectives.
Forward-looking Statements involve various risks and uncertainties and are based on certain factors
and assumptions. There can be no assurance that such statements will prove to be accurate, and actual
results and future events could differ materially from those anticipated in such statements. Important
factors that could cause actual results to differ materially from the Company's expectations include
uncertainties related to the Company's ability to access investors for the Offering, the timeliness and
success of regulatory approvals, fluctuations in copper and other commodity prices, uncertainties
inherent in the exploration of mineral properties, the impact and progression of the COVID-19 pandemic
and other risk factors set forth in the Company's prospectus under the heading "Risk Factors". The
Company undertakes no obligation to update or revise any Forward-looking Statements, whether as a
result of new information, future events or otherwise, except as may be required by law. New factors
emerge from time to time, and it is not possible for Element 29 to predict all of them, or assess the
impact of each such factor or the extent to which any factor, or combination of factors, may cause results
to differ materially from those contained in any Forward-looking Statement. Any Forward-looking
Statements contained in this press release are expressly qualified in their entirety by this cautionary
statement.
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE
UNITED STATES
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/107646