Element 29 Closes Private Placement of $1.54 Million All dollars are in Canadian dollars
Element 29 Closes Private Placement of $1.54
Million
All dollars are in Canadian dollars unless otherwise noted
Vancouver, British Columbia--(Newsfile Corp. - January 6, 2023) - Element 29 Resources Inc.
(TSXV:
ECU) (OTCQB: EMTRF) (BVL: ECU)
("
Element 29
" or the "
Company
") announces that the Company
has closed its non-brokered private placement financing of 7,725,000 units (the "
Units
") at a price of
$0.20 per Unit for aggregate gross proceeds of $1,545,000 (the "
Offering
").
The Offering
Each Unit comprises one common share in the capital of the Company (a "
Common Share
") and one-
half of one non-transferable common share
purchase warrant in the capital of the Company (each whole
warrant, a "
Warrant
"). Each whole Warrant is exercisable for a common share at an exercise price of
$0.30 and will expire two years from the closing date of the Offering.
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 330,000 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 Steve Stakiw, Richard Osmond and Patrick Elliott's 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. cash finder's fees totalling $30,900
and paid
Canaccord Genuity Corp. cash finder's fees totalling $600.
The net proceeds of the Offering will be used for the completion of a planned initial mineral resource
estimate for the Flor de Cobre project and general working capital for the Company. All securities
issuable under the Offering will be subject to a four-month hold period from the date of closing.
Details of the Offering were previously announced on November 28, 2022 and January 6, 2023.
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 more established
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 Elida Porphyry Copper Deposit in west-
central Peru and its Flor de Cobre Porphyry Copper Project located in the Southern Peru Copper Belt,
26 km southeast from Freeport-McMoRan's Cerro Verde copper mine. Both projects are well located for
potential 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:
Steve Stakiw, President & CEO
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 "may", "will", "intends", "proposed", "believes", "continues", "plans",
"expects" or similar expressions, or negative connotations thereof 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
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