Finlay Minerals Announces the Closing of Non- Brokered Financings Totalling $1.0 Million
Finlay Minerals Announces the Closing of Non-
Brokered Financings Totalling $1.0 Million
/NOT FOR DISTRIBUTION TO
UNITED STATES
NEWSWIRE SERVICES OR FOR
DISSEMINATION IN
THE UNITED STATES
/
VANCOUVER
,
Dec. 18, 2019
/CNW/ -
Finlay Minerals Ltd. (TSXV: FYL)
("
Finlay
" or the
"
Company
") is pleased to announce that, further to the Company's news release dated
November
21, 2019
, the Company has closed, subject to receipt of final approval from the TSX Venture
Exchange ("
TSX-V
"), its private placement financing for total proceeds of
$1,000,000
(the "
Private
Placement
").
The Private Placement consisted of the issuance of: (i) a total of 10,000,000 units (the "
Units
"), at a
price of
$0.05
per Unit, with each Unit comprising one common share of the Company and one
common share purchase warrant (each, a "
Unit Warrant
"); and (ii) a total of 6,250,000 units (each,
a "
FT Unit
"), at a price of
$0.08
per FT Unit, with each FT Unit comprising one common share of the
Company which qualifies as a "flow-through share" within the meaning of the
Income Tax Act
(
Canada
) and one-half of one Unit Warrant.
Each Unit Warrant entitles the holder thereof to acquire one additional common share of the
Company (each, a "
Warrant Share
") at an exercise price of
$0.20
per Warrant Share for a period
of four years from the closing of the Private Placement; provided that, at any time after four months
and a day following closing of the Private Placement, if the closing price of the Company's common
shares trading on the TSX-V is
$0.30
or higher for 20 consecutive trading days, the Company may
accelerate the expiry of the Unit Warrants upon written notice to the holders thereof, and all such
holders shall have 30 days from the date of such notice being provided to exercise their Unit
Warrants.
All securities issued under the Private Placement are subject to a four-month hold period expiring on
April 19
, 2020. No finder's fees were paid by the Company in connection with the Private
Placement.
The Company expects to use the proceeds raised from the private Placement to conduct deep
drilling on Finlay's Silver Hope property, deep induced polarization (IP) geophysics on its PIL
Property and for general working capital purposes.
In connection with the Private Placement, (i)
John Barakso
("
Barakso
"), Founder and Chairman of
the Board of Directors, purchased a total of 6,187,500 FT Units, and (ii) Baril Developments Ltd.
("
Baril
"), a private company controlled by
John Barakso
, purchased a total of 10,000,000 Units.
The issuance of such FT Units and Units to Barakso and Baril, respectively, constitutes a "related
party transaction" within the meaning of Policy 5.9 of the TSX-V and Multilateral Instrument 61-101 -
Protection of Minority Security Holders in Special
Transactions
("
MI 61-101
") as a result of Mr.
Barakso being a director and a "control person" (as defined under applicable securities laws) of the
Company. The Company is relying on the exemption from the formal valuation requirement in section
5.5(b) of MI 61-101 (as a result of its common shares being listed on the TSX-V) and the exemption
from the minority approval requirement in section 5.7(1)(b) of MI 61-101 (as neither the fair market
value of Units and FT Units purchased, nor the consideration paid by Mr. Barakso and Baril has
exceeded
$2,500,000
).
The securities being offered will not be registered under the United States Securities Act of 1933, as
amended and may not be offered or sold within
the United States
absent registration or an
exemption from the registration requirements. This news release does not constitute an offer to sell
or a solicitation of an offer to buy any of the securities in
the United States
.
About Finlay Minerals Ltd.
Finlay is a TSX Venture Exchange company focused on exploration for base and precious metal
deposits in northern
British Columbia
. The Company's properties are:
the
Silver Hope
Property which includes porphyry copper-molybdenum mineralization
discovered in 2010, along with three silver-copper mineralized zones, in a contiguous trend with
the mined-out deposits of the former Equity Silver Mine (71 million oz. silver, 185 million lbs.
copper and 508,000 oz. gold;
Reference:
http://minfile.gov.bc.ca/Summary.aspx?minfilno=093L++001
).
The Silver Hope Property
surrounds the former Equity Silver Mine;
the
ATTY
Property which is contiguous to the north side of the Kemess East deposit and
adjacent to the Kemess Underground deposit of Centerra Gold Inc. and which is currently under
option to Serengeti Resources Inc. (
Reference:
Finlay NR 01-18 dated
March 5, 2018
), and
the
PIL
Property, which is adjacent to Sable Resource's Baker Mine, has nine known
mineralized zones including the recently discovered and expanded Pillar East gold-silver
structural system. The Company is focused on the discovery of copper-gold-molybdenum
porphyry systems on the PIL Property.
Finlay Minerals Ltd. trades under the symbol "FYL" on the TSX Venture Exchange. For further
information and details, please visit the Company's website at
www.finlayminerals.com
.
On behalf of the Board of Directors,
Robert F. Brown
, P. Eng.
President, CEO & Director
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.
Forward-Looking Information:
This news release includes certain "forward-looking information"
and "forward-looking statements" (collectively, "forward-looking statements") within the meaning of
applicable Canadian securities legislation. All statements in this news release that address events
or developments that we expect to occur in the future are forward-looking statements. Forward-
looking statements are statements that are not historical facts and are generally, although not
always, identified by words such as "expect", "plan", "anticipate", "project", "target", "potential",
"schedule", "forecast", "budget", "estimate", "intend" or "believe" and similar expressions or their
negative connotations, or that events or conditions "will", "would", "may", "could", "should" or
"might" occur. All such forward-looking statements are based on the opinions and estimates of
management as of the date such statements are made. Forward-looking statements in this news
release include statements regarding, among others, the receipt of final approval from the TSX
Venture Exchange, the expected use of proceeds from the Private Placement and the exploration
plans for the Company's properties. Although Finlay believes the expectations expressed in such
forward-looking statements are based on reasonable assumptions, such statements are not
guarantees of future performance and actual results or developments may differ materially from
those forward-looking statements. Factors that could cause actual results to differ materially from
those in forward-looking statements include market prices, exploration successes, and continued
availability of capital and financing and general economic, market or business conditions. These
forward-looking statements are based on a number of assumptions including, among other things,
assumptions regarding general business and economic conditions, the timing and receipt of
regulatory and governmental approvals, the ability of Finlay and other parties to satisfy stock
exchange and other regulatory requirements in a timely manner, the availability of financing for
Finlay's proposed transactions and programs on reasonable terms, and the ability of third party
service providers to deliver services in a timely manner. Investors are cautioned that any such
statements are not guarantees of future performance and actual results or developments may
differ materially from those projected in the forward-looking statements. Finlay does not assume
any obligation to update or revise its forward-looking statements, whether as a result of new
information, future or otherwise, except as required by applicable law.
SOURCE
Finlay Minerals Ltd.
View original content:
http://www.newswire.ca/en/releases/archive/December2019/18/c4427.html
%SEDAR: 00018019E
For further information:
Finlay Minerals Ltd., Robert Brown, President & CEO, Tel: 604-684-3099,
CO: Finlay Minerals Ltd.
CNW 17:10e 18-DEC-19