Mink Ventures Closes Second Tranche of Private Placement
Mink Ventures Closes Second Tranche of
Private Placement
Toronto, Ontario--(Newsfile Corp. - August 3, 2023) -
MINK Ventures Corporation (TSXV: MINK)
("MINK"
or the
"Company")
is pleased to announce that it has closed the second tranche of the non-
brokered private placement announced on June 21, 2023 (the "
Private Placement
"). The second
tranche raised gross proceeds of $96,774.84 from the issuance of 293,166 hard dollar units (the "
HD
Units
") at a price of $0.15 per HD Unit and the issuance of 293,333 flow-through units (the "
FT Units
")
at a price of $0.18 per FT Unit.
The total gross proceeds raised from both tranches of the Private
Placement was $323,509.74.
Each HD Unit consists of one common share of the Company (a "
Common Share
") and one Common
Share purchase warrant ("
HD Warrant
"). Each HD Warrant entitles the holder thereof to acquire one (1)
Common Share of the Company for a period of thirty-six (36) months from the date of issuance at an
exercise price of $0.20 for the first eighteen (18) months and an exercise price of $0.25 for the
remaining eighteen (18) months.
Each FT Unit consists of one Common Share of the Company (a "
FT Share
") and one Common Share
purchase warrant ("
FT Warrant
"). Each FT Warrant entitles the holder thereof to acquire one (1)
Common Share of the Company for a period of thirty-six (36) months from the date of issuance at an
exercise price of $0.20 for the first eighteen (18) months and an exercise price of $0.25 for the
remaining eighteen (18) months.
The Company paid aggregate finder's fees for both tranches totaling $17,880.45 in cash and 112,105
finder's warrants (the "
Finder's Warrants
"). Each Finder's Warrant entitles the holder thereof to acquire
one (1) Common Share of the Company for a period of thirty-six (36) months from the date of issuance
at an exercise price of $0.20 for the first eighteen (18) months and an exercise price of $0.25 for the
remaining eighteen (18) months.
All finder's fees are subject to compliance with applicable securities
legislation and TSX Venture Exchange policies.
All securities issued in this closing of the Private Placement are subject to statutory four month plus a
day, hold periods expiring on December 4, 2023.
The Private Placement remains subject to obtaining
final approval of the TSX Venture Exchange.
The FT Shares were issued as "flow-through shares" within the meaning of the
Income Tax Act
(Canada) (the "
Tax Act
") An amount equal to the portion of the subscription price that is directly
attributable to the consideration paid for the subscription and issuance of the FT Shares will be used to
incur eligible resource exploration expenses which will qualify as (i) "Canadian exploration expenses"
(as defined in the Tax Act), and (ii) "flow-through critical mineral mining expenditures" (as defined in
subsection 127(9) of the Tax Act) (collectively, the "
Qualifying Expenditures
"). Qualifying Expenditures
in an aggregate amount equal to the gross proceeds raised from the issuance of the FT Shares will be
renounced to the initial purchasers of the FT Units with an effective date no later than December 31,
2023. If the Company is unable to renounce such Qualifying Expenditures, or if the Qualifying
Expenditures renounced are reduced by the Canada Revenue Agency, the Company will, to the extent
permitted by the Tax Act, indemnify each purchaser of FT Units for any additional taxes payable by such
purchaser as a result of the Company's failure to renounce the Qualifying Expenditures. The FT Warrants
will not be issued as "flow-through shares" within the meaning of the Tax Act.
Certain directors and officers of the Company purchased an aggregate of 100,000 FT Units pursuant to
the Private Placement, constituting a "related party transaction" as such term is defined by Multilateral
Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The
transaction will be exempt from the MI 61-101 valuation and minority approval requirements for related
party transactions in connection with the Offering under sections 5.5(a) and 5.7(1)(a) of MI 61-101 as
neither the fair market value (as determined under MI 61-101) of the subject matter of, nor the fair market
value of the consideration for, the transaction, insofar as it involves the Related Parties, exceeds 25% of
the Company's market capitalization (as determined under MI 61-101)
The Company plans to use the net proceeds raised from the sale of the HD Units and FT Units under the
Private Placement for the exploration and advancement of the Company's Montcalm nickel copper
cobalt project, the Warren copper nickel project and for general working capital purposes.
The securities offered have not been registered under the U.S. Securities Act of 1933, as
amended, and may not be offered or sold in the United States absent registration or an
applicable exemption from the registration requirements.
This press release shall not constitute an
offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the securities in any
jurisdictions in which such offer, solicitation or sale would be unlawful. Any offering made will be pursuant
to available prospectus exemptions and restricted to persons to whom the securities may be sold in
accordance with the laws of such jurisdictions, and by persons permitted to sell the securities in
accordance with the laws of such jurisdictions.
About Mink Ventures Corporation:
Mink Ventures Corporation (TSXV: MINK) is a Canadian mineral exploration company exploring for
battery metals in Ontario, Canada. It has a prospective, nickel copper cobalt exploration portfolio, with its
Montcalm project, which covers approximately 40 km
2
adjacent to Glencore's former Montcalm Mine with
historical production of 3.93 million tonnes of ore grading 1.25% Ni, 0.67% Cu and 0.051% Co (Ontario
Geological Survey, Atkinson, 2010), as well as the recent addition of the Warren Project, comprised of
14 patented mining claims covering 251 hectares. These complementary Ni Cu projects have excellent
access and infrastructure and are in close proximity to the Timmins Mining Camp. After giving effect to
the share issuance from this tranche of the Private Placement, the Company has 17,256,984 Common
Shares outstanding.
For further information about Mink Ventures Corporation please contact: Natasha Dixon, President &
CEO, T: 250-882-5620 E:
or Kevin Filo, Director, T: 705-266-6818 or visit
www.sedar.com
.
Forward-Looking Statements
This press release includes certain "forward-looking statements" under applicable Canadian
securities legislation, including, but not limited to, statements with respect to the completion of the
Private Placement, the proposed use of proceeds, and the exploration potential of the Company's
mineral properties. Forward-looking statements involve known and unknown risks, uncertainties and
other factors which may cause the actual results, performance or achievements of Mink to be
materially different from any future results, performance or achievements expressed or implied by the
forward-looking statements. Factors that could affect the outcome include, among others: future prices
and the supply of metals; the results of drilling; inability to raise the money necessary to incur the
expenditures required to retain and advance the properties; environmental liabilities (known and
unknown); general business, economic, competitive, political and social uncertainties; accidents,
labour disputes and other risks of the mining industry; political instability, terrorism, insurrection or
war; delays in obtaining governmental approvals; or failure to obtain regulatory approvals. For a more
detailed discussion of such risks and other factors that could cause actual results to differ materially
from those expressed or implied by such forward-looking statements, refer to Mink's filings with
Canadian securities regulators available on SEDAR at
www.sedar.com
.
Although Mink has attempted to identify important factors that could cause actual actions, events or
results to differ materially from those described in forward-looking statements, there may be other
factors that cause actions, events or results to differ from those anticipated, estimated or intended.
Forward-looking statements contained herein are made as of the date of this news release and Mink
disclaims any obligation to update any forward-looking statements, whether as a result of new
information, future events or results or otherwise, except as required by applicable securities laws.
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.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/175974