Mammoth Announces $2.0 Million, Institutional Backed Private Placement Financing
Exchange Tower
410 - 150 York Street
Toronto, Ontario
M5H 3S5 Canada
www.mammothresources.ca
FOR IMMEDIATE RELEASE: May 25, 2021 No. 12/21
MAMMOTH ANNOUNCES $2.0 MILLION, INSTITUTIONAL
BACKED PRIVATE PLACEMENT FINANCING
Toronto, Canada (May 25, 2021) - Mammoth Resources Corp. (TSX-V: MTH), (the “Company”, or
“Mammoth”) is pleased to announce a non brokered private placement financing (the “Private
Placement”) comprising up to 14,300,000 units (the “Units”) at a price of $0.14 per Unit for gross
proceeds of $2,002,000, the Unit offering price being the equivalent of the 5, 10 and 15-day volume
weighted average price of the Company’s common shares traded on the TSX Venture Exchange (the
“Exchange”). Funds managed by institutional together with high net worth investors have agreed to
purchase 10,500,000 Units in the Private Placement.
Each Unit of the Private Placement will consist of one common share of the Company (the “Common
Share”) and one share purchase warrant (the “Warrant”). Each Warrant will entitle the holder to
purchase one additional Common Share for a period of 18 months from closing of the Private Placement
at a price of $0.21 and if commencing on the date that is four months after the closing date, the closing
price of a Common Share on the Exchange is higher than $0.25 for 20 consecutive trading days, based
on the volume weighted average price on daily closing, then on the date that is the 20th consecutive
trading day (the “Acceleration Trigger Date”) the expiry date of the Warrants will be accelerated to the
date that is 30 business days after the Acceleration Trigger Date provided the Company, within three
trading days of the Acceleration Trigger Date, issues a news release announcing the acceleration of the
expiry date and delivers or sends by electronic transmission a copy of such news release to the Warrant
holders.
Proceeds from this Private Placement will be used primarily to fund diamond drilling on the Company’s
100% owned Tenoriba gold-silver, with copper high sulphidation project in the prolific Sierra Madre
precious metal belt, Mexico. This drill program is planned to commence within weeks of the closing of
this Private Placement. The drill contractor that will be contracted to perform this diamond drilling has
agreed to accept up to 30% of the contractor cost of this program in shares in this Private Placement.
Thomas Atkins, President and CEO of Mammoth commented on the Private Placement, stating:
“The price and unit structure of this financing is clearly attractive with the company having gained the
commitment of institutional and high net worth investors comprising the vast majority of the financing.
We anticipate a quick closing of this financing which will enable the drill contractor to begin preparations
to mobilize the drill rig to site with drilling to begin within weeks of closing. At the offering price, and with
the majority of the funds from this financing directed towards this work, Mammoth’s market capitalization
will still remain approximately equal to amounts spent at Tenoriba. We’re confident the work planned
from the proceeds from this financing will enhance the company’s share value as we begin to deliver
results from this drilling as we test compelling drill targets over almost 5 kilometres of known surface
mineralization coinciding with attractive geophysical features, and in a number of instances adjacent to
prior, potentially economical gold-silver drill hole intervals at Tenoriba. We intend to release results from
additional 3D geophysical modelling and identify additional drill targets in the near future as we advance
closing of the financing and segue to drilling. Mammoth looks forward to announcing results from these
activities.”
This Private Placement is available to accredited investors. Securities issued under this Private
Placement will be subject to a four-month hold period. In accordance with the requirements of the
Investment Dealer Exemption, the Company confirms there is no material fact or material change
related to the Company which has not been disclosed. The Private Placement is subject to receipt of all
required regulatory and Exchange approvals. The Company may pay a finder's fees on a portion of the
Private Placement in accordance with applicable securities laws and the policies of the TSX Venture
Exchange.
Anyone interested in participating in participating in this financing are encouraged to contact Thomas
Atkins, President and CEO of Mammoth at: [email protected] or by telephone at: 416 509-4326.
About Mammoth Resources:
Mammoth Resources (TSX-V: MTH) is a precious metal mineral exploration Company focused on
acquiring and defining precious metal resources in Mexico and other attractive mining friendly
jurisdictions in the Americas. The Company holds a 100% interest (subject to a 2% net smelter royalty
purchasable anytime within two years from commencement of commercial production for US$1.5
million) in the 5,333 hectare Tenoriba gold property located in the Sierra Madre Precious Metal Belt in
southwestern Chihuahua State, Mexico. Mammoth is seeking other opportunities to option exploration
projects in the Americas on properties it deems to host above average potential for economic
concentrations of precious metals mineralization.
To find out more about Mammoth Resources and to sign up to receive future press releases, please visit the
company's website at: www.mammothresources.ca., or contact Thomas Atkins, President and CEO.
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 may contain or refer to forward-looking information. All
information other than statements of historical fact that address activities, events or developments that the
Company believes, expects or anticipates will or may occur in the future are forward-looking statements; examples
include the listing of its shares on a stock exchange and establishing mineral resources. These forward-looking
statements are subject to a variety of risks and uncertainties beyond the Company's ability to control or predict that
may cause actual events or results to differ materially from those discussed in such forward-looking statements.
Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by
applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking
statement, whether as a result of new information, future events or results or otherwise. Although the Company
believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking
statements are not guarantees of future performance and, accordingly, undue reliance should not be placed on
these forward-looking statements due to the inherent uncertainty therein.