CORRECTION FROM SOURCE: Equity Metals Announces the Closing of Private Placement
CORRECTION FROM SOURCE: Equity Metals
Announces the Closing of Private Placement
Vancouver, British Columbia--(Newsfile Corp. - January 18, 2023) -
Equity Metals Corporation
(TSXV: EQTY) (OTCQB: EQMEF) (the "Company" or "Equity Metals") is issuing a correction to its news
release dated January 17, 2023 to include details of finders' fees paid and disclosure of a related party
transaction. The Company reported today that it has closed its previously announced flow-through,
premium flow-through and non-flow-through private placement (the "Offering") by issuing a total of
23,545,233 units for gross proceeds of $2,742,649.26.
The Company closed the final tranche of the Offering by issuing 10,500,000 non-flow-through units ("NFT
Units") at a price of $0.10 per NFT Unit for gross proceeds of $1,050,000. Each NFT Unit consists of
one non-flow-through common share and one warrant. As previously announced, the Company closed a
first tranche of the Offering for gross proceeds of $1,692,649.26 by issuing 8,333,333 flow-through units
(the "FT Units") at a price of $0.12 per FT Unit and 4,711,900 premium flow-through units (the "PFT
Units") at a price of $0.147 per PFT Unit. The PFT Units were originally announced as charitable flow-
through units; the PFT Units did not have a charitable aspect but were offered at a premium. Each FT
Unit and PFT Unit consist of one flow-through common share and one warrant. The warrants for all units
are the same with each warrant entitling the holder thereof to purchase one non-flow-through common
share for a period of 3 years at a price of $0.15.
Securities issued pursuant to the final tranche of the Offering include common shares, share purchase
warrants and finder's warrants issued as finder's fees, all of which carry a legend restricting trading of the
securities until May 17, 2023.
The gross proceeds received from the sale of both the FT Units and PFT Units will be used for work
programs on the Company's Silver Queen, Au-Ag, exploration property, in British Columbia. The net
proceeds received from the sale of the NFT Units will be used for general working capital.
Two insiders of the Company subscribed for an aggregate 583,333 FT Units. Such participation is
considered to be a "related party transaction" as defined under Multilateral Instrument 61-101 ("MI 61-
101"). The Company is relying on the exemptions from the valuation and minority shareholder approval
requirements of MI 61-101 contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101, as the fair market
value of the participation in the Offering by insiders does not exceed 25% of the market capitalization of
the Company, as determined in accordance with MI 61-101.
In connection with the Offering, the Company paid finders' fees comprised of an aggregate $56,155.68
and 490,764 non-transferable finder warrants, with each finder warrant exercisable to purchase one
common share for a period of 3 years at a price of $0.15. The Offering and payment of finders' fees is
subject to TSX Venture Exchange approval.
About Silver Queen Project
The Silver Queen project is a premier gold-silver property with over 100 years of historical exploration
and development and is located adjacent to power, roads and rail with significant mining infrastructure
that was developed under previous operators Bradina JV (Bralorne Mines) and Houston Metals Corp. (a
Hunt Brothers company). The property contains two historical declines into the No. 3 Vein, camp
infrastructure, and a maintained Tailings Facility.
The Silver Queen property consists of 45 mineral claims, 17 crown grants, and two surface crown grants
totalling 18,852ha with no underlying royalties. Mineralization is hosted by a series of epithermal veins
distributed over a 6 sq km area.
On December 1, 2022 (NR-12-22), the Company reported an independently estimated, Mineral
Resource Estimate ("MRE") for Silver Queen which increased an earlier MRE, initially reported on July
16th, 2019, by +187% in the Indicated category and by +30% in the Inferred category on a AgEq basis
with approximately 74% of the new MRE classified as Indicated Resources. The Company has
expended C$6.75 million on exploration of the Silver Queen project since 2019 resulting in a very low
discovery cost of $0.15/oz of added AgEq or $11/oz of added AuEq. The MRE remains open for
additional delineation west of the Camp Target and within the Sveinson Target. In addition, there are
several targets that have only been tested by a few drill holes and remain very attractive areas for new
discoveries and MRE increase.
For more information on the recent MRE please refer to the Company's News Release NR-12-22 dated
December 1, 2022 and NR-02-23 dated January 16, 2023.
About Equity Metals Corporation
Equity Metals Corporation is a Manex Resource Group Company. Manex provides exploration,
administration, and corporate development services for Equity Metals' two major mineral properties, the
Silver Queen Au-Ag-Zn-Cu project,
located in central B.C., and the
Monument Diamond project
,
located in Lac De Gras, NWT. The Company owns 100% interest, with no underlying royalty, in the
Silver Queen project,
located along the Skeena Arch in the Omineca Mining Division, British
Columbia. The property hosts high-grade, precious- and base-metal veins related to a buried porphyry
system, which has been only partially delineated. The Company also has a controlling JV interest in the
Monument Diamond project
,
NWT
, strategically located in the Lac De Gras district within 40 km of
both the Ekati and Diavik diamond mines. The project owners are Equity Metals Corporation (57.49%),
Chris and Jeanne Jennings (22.11%); and Archon Minerals Ltd. (20.4%). Equity Metals is the operator of
the project.
The Company also has royalty and working interests in other Canadian properties, which are being
evaluated further to determine their value to the Company.
Robert Macdonald, MSc. P.Geo, is VP Exploration of Equity Metals Corporation and a Qualified Person
as defined by National Instrument 43-101. He is responsible for the supervision of the exploration on the
Silver Queen project and for the preparation of the technical information in this disclosure.
On behalf of the Board of Directors
"Joseph Anthony Kizis, Jr."
Joseph Anthony Kizis, Jr., P.Geo
President, Director, Equity Metals Corporation
For further information, visit the website at
https://www.equitymetalscorporation.com
; or contact us at
604.641.2759 or by email at
.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this
release. This news release may contain forward-looking statements. Forward-looking statements
address future events and conditions and therefore involve inherent risks and uncertainties. Actual
results may differ materially from those currently anticipated in such statements. Factors that could
cause actual results to differ materially from those in forward looking statements include the timing
and receipt of government and regulatory approvals, and continued availability of capital and
financing and general economic, market or business conditions.
Equity Metals Corporation does not
assume any obligation to update or revise its forward-looking statements, whether as a result of new
information, future events or otherwise, except to the extent required by applicable law.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/151852