Happy Creek Completes $1,368,207 First Tranche of Private Placement And Increases Size of Flow-Through Offering
Happy Creek Completes $1,368,207 First Tranche of Private Placement
And Increases Size of Flow-Through Offering
July 5th, 2017 – Vancouver, British Columbia – Happy Creek Minerals Ltd. (TSX -
V:HPY, the “Company”) announces the completion of the first tranche of its non-brokered
financing announced May 30th 2017.
The Company has completed the first tranche of a non- brokered private placement for
gross proceeds of $1, 368,207 through the sale of 4,090,035 common shares at a price of
twenty cents per share and 2,116,153 flow-through shares at a price of twenty -six cents
per flow-through share. The shares will be subject to resale restrictions until October 31,
2017.
The proceeds from the sale of flow -through shares will be used to incur qualified
exploration expense in accordance with Canadian Income Tax provisions and together
with proceeds of the sale of non flow -through shares, will be used to conduct prim arily
trenching and drilling on the Company’s Fox tungsten property, B.C. and for general
working capital.
A finder’s fee to qualified agents is payable in connection with the first tranche of the
financing totalling $ 75,740 in cash and 302,171 broker warrants. Each broker warrant is
exercisable into one common share of the Company at a price of $0. 30 for a period of two
years.
The Company anticipates closing the second tranche of the private placement in a few
days. The flow-through portion of the private placement is currently oversubscribed. The
Company will therefore increase the size of the flow-through portion of the offering to
6,741,153 flow -through shares at a price of $0.26 per share for gross proceeds of
$1,752,700 (up from 5,769,230 flow-through shares and $1,500,000 announced in the May
30 news release).
In connection with the first tranche closing , the Company issued 765 ,035 common shares
to persons that are directors or senior officers of the Company. The Company has
determined that exemptions from the various requirements of TSX Venture Exchange
Policy 5.9 and Multilateral Instrument 61- 101 (“MI 61-101”) are available for the issuance
of the common shares to the related parties. The Company relied on Section 5.5(c) of MI
61-101 for an exemption from the formal valuation requirement on the basis that the
transaction is a distribution of securities for cash, and Section 5.7(b) of MI 61- 101 for an
exemption from the minority approval requirement as the fair market value of the
transaction is not more than $2,500,000. The Company did not file a material change
report more than 21 days in advance of the closing of the Offering, which the Company
deems reasonable and necessary in the circumstances as the closing date of the Offering
had not been established at that time and the Company wished to complete the Offering in
an expeditious manner.
4187133.pp019 NR First Tranche Clean
On behalf of the Board of Directors,
“David E Blann”
____________________
David E Blann, P.Eng.
President, CEO
FOR FURTHER INFORMATION PLEASE CONTACT:
David Blann, President, CEO
Corporate Office:
Phone: 604.662.8310
Email: [email protected]
Website: www.happycreekminerals.com
Neither the 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.