Fredonia Mining Inc. Announces Upsize to Previously Announced "Best Efforts" Private Placement Financing
Fredonia Mining Inc. Announces Upsize to Previously Announced "Best
Efforts" Private Placement Financing
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO THE UNITED STATES OF AMERICA OR TO ANY
PERSON LOCATED OR RESIDENT IN THE UNITED STATES OF AMERICA, ITS TERRITORIES AND POSSESSIONS, ANY
STATE OF THE UNITED STATES OR THE DISTRICT OF COLUMBIA.
TORONTO, April 07, 2022 -- Fredonia Mining Inc. (TSXV: FRED) (the "Company" or "Fredonia "), is pleased to announce that
in connection with its previously announced best efforts private placement offering (the "Offering") the Company and Paradigm
Capital Inc. (the “Agent”) have agreed to increase the size of the Offering. The Company will now issue 19,725,000 units (the
"Units") at a price of $0.18 per Unit (the “ Issue Price”) for total gross proceeds of $3,550,500. Each Unit will comprise one
common share (a " Common Share ") and one common share purchase warrant (a “ Warrant ”). Each Warrant will be
exercisable for five years from the Closing Date at an exercise price of $0.28 per Common Share.
In addition, the Company will grant the Agent an option (the “Agent’s Option”) to sell up to that number of additional Units
equal to 15% of the base Offering size, exercisable up to 48 hours prior to the closing of the Offering.
The net proceeds from the Offering shall be used to fund ongoing exploration, updating technical studies, and for general
corporate purposes.
The Offering is expected to close on or about April 27, 2022 (the " Closing Date") and will be subject to regulatory approvals
and customary closing conditions, including listing of the Common Shares on the TSX Venture Exchange. All securities
issued pursuant to the Offering will have a hold period of four months and one day.
The securities have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the
"U.S. Securities Act "), or any U.S. state securities laws, and may not be offered or sold in the United States without
registration under the U.S. Securities Act and all applicable state securities laws or compliance with the requirements of an
applicable exemption therefrom. This news release does not constitute an offer to sell or the solicitation of an offer to buy
securities in the United States, nor may there be any sale of these securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful.
Certain directors and officers of the Company may participate in the Offering. A material change report with respect to the
Offering is expected to be filed less than 21 days before the expected Closing Date, which is reasonable and necessary in the
circumstances for the Company to take advantage of available financing opportunities.
About Fredonia
Fredonia, directly or indirectly, owns a 100% interest in certain license areas (totaling approximately 18,300 ha.) (collectively,
the "Project"), all within the Deseado Massif geological region in the Province of Santa Cruz, Argentina, including the following
principal areas: El Aguila, approx. 9,100ha, Petrificados, approx. 3,000ha, and the flagship, advanced El Dorado-Monserrat
("EDM") covering approx. 6,200ha located close to Anglo Gold Ashanti's Cerro Vanguardia mine, subject to a 1.5% net
smelter return royalty on the EDM project, and a 0.5% net profits interest on Winki II, El Aguila I, El Aguila II and Petrificados.
For further information: Please visit the Company website www.fredoniamanagement.com or contact: Carlos Espinosa,
Chief Financial Officer, Direct: +1-647-401-9292, Email: [email protected]
Forward-looking Information Cautionary Statement
This news release contains "forward ‐looking information" within the meaning of the applicable Canadian securities legislation
that is based on expectations, estimates, projections and interpretations as at the date of this news release. The information
in this news release about the Offering; the use of the proceeds from the Offering; the jurisdictions in which the Units are
offered or sold; the number of Units offered or sold; the gross proceeds from the Offering; the timing and ability of the Company
to close the Offering, if at all; the timing and ability of the Company to satisfy the listing conditions of the TSX Venture
Exchange, if at all; the prospects of the Project; the filing of a material change report with respect to the Offering; and any
other information herein that is not a historical fact may be "forward-looking information". Any statement that involves
discussions with respect to predictions, expectations, interpretations, beliefs, plans, projections, objectives, assumptions,
future events or performance (often but not always using phrases such as "expects", or "does not expect", "is expected",
"interpreted", "management's view", "anticipates" or "does not anticipate", "plans", "budget", "scheduled", "forecasts",
"estimates", "believes" or "intends" or variations of such words and phrases or stating that certain actions, events or results
"may" or "could", "would", "might" or "will" be taken to occur or be achieved) are not statements of historical fact and may be
forward-looking information and are intended to identify forward-looking information. This forward-looking information is based
on reasonable assumptions and estimates of management of the Company, at the time such assumptions and estimates
were made, and involves known and unknown risks, uncertainties or other factors which may cause the actual results,
performance or achievements of the Company to be materially different from any future results, performance or achievements
expressed or implied by such forward-looking information. Such factors include, among others, risks relating to the Offering;
volatility in the trading price of common shares of the Company; risks relating to the ability of the Company to obtain required
approvals, complete definitive documentation and complete the Offering on the terms announced; ability of Fredonia to
complete further exploration activities; property interests; the results of exploration activities; risks relating to mining activities;
the global economic climate; metal prices; dilution; environmental risks changes in the tax and regulatory regime; and
community and non-governmental actions. Although the forward-looking information contained in this news release is based
upon what management believes, or believed at the time, to be reasonable assumptions, the Company cannot guarantee
shareholders and prospective purchasers of securities of the Company that actual results will be consistent with such forward-
looking information, as there may be other factors that cause results not to be as anticipated, estimated or intended, and
neither Company nor any other person assumes responsibility for the accuracy and completeness of any such forward looking
information. Company does not undertake, and assumes no obligation, to update or revise any such forward looking
statements or forward-looking information contained herein to reflect new events or circumstances, except as may be required
by law.
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.