Metallis Closes First Tranche and Increases Size of Non-Brokered Private Placement
Metallis Closes First Tranche and Increases Size of Non-Brokered
Private Placement
VANCOUVER, BC
,
Oct. 7, 2020
/CNW/ -
Metallis Resources Inc.
(TSXV: MTS) (OTCQB: MTLFF) (FSE: 0CVM) (the "Company" or
"Metallis") today announces the closing of the first tranche ("First Tranche") of its non-brokered private placement (the "Financing") which was
initially announced on
September 28, 2020
, raising
$2,994,350
. The Company has received conditional approval of the Financing from the
TSX-V. The Company also announces that due to investor demand, it has now increased the size of the Financing from
$3 million
to
$3.5
million
by adding an additional 300,000 non-flow through units at
$0.40
per unit and 850,000 flow-through units at
$0.45
per unit.
The Financing will now consist of up to 3,072,222 flow-through units at a price of
$0.45
per unit for proceeds of up to
$1,382,500
and up to
5,300,000 non-flow-through units at a price of
$0.40
per unit for proceeds of up to
$2,120,000
. The First Tranche closed 4,805,000 units at
$0.40
per unit for proceeds of
$1,922,000
, and 2,383,000 flow-through units at
$0.45
per unit for proceeds of
$1,072,350
.
Each flow-through unit consists of one flow-through common share and one non-flow-through, non-transferable share purchase warrant. Each
warrant will entitle the holder to purchase one additional common share at a price of
$0.68
per share for a 3-year period.
Each non-flow-through unit consists of one common share and one non-flow-through, non-transferable share purchase warrant. Each warrant
will entitle the holder to purchase one additional common share at a price of
$0.60
per share for a 3-year-period.
The flow-through shares will qualify as "flow-through shares" for the purpose of the Income Tax Act (
Canada
) (the "Act"). The proceeds of the
flow-through private placement will be incurred on "Canadian exploration expenses" (within the meaning of the Act). The Company will
renounce these expenses to the purchasers with the effective date no later than
December 31, 2020
, and as required under the Act.
The flow-through proceeds from the Financing will be used strictly for qualifying exploration expenditures and the non-flow-through proceeds
will be used for both exploration and general working capital.
Canaccord Genuity Corp. acted as a finder in association with a certain subscription in the First Tranche. The Company will pay Canaccord
$3,150
in cash finders fees and will issue 7,000 finder's warrants exercisable at
$0.40
per share for 3 years from the date of issuance.
Shares and warrants issued on closing are subject to a trading hold period expiring four months plus one day from the date of issue.
Metallis also announces that it has granted
Frank Lagiglia
of Nicosia Capital Corp. stock options to purchase 100,000 shares of the Company
at a price of
$0.40
per share for a five-year period. The options will vest over a one-year period.
Nicosia
has been a provider of investor
relations services to the Company since
August 2018
and was not granted any stock options prior to this announcement. The options are
granted in accordance with Metallis Resources Stock Option Plan (the "Plan") as approved by the shareholders at the Company's Annual
General and Special Meeting held on
September 15, 2020
. A copy of the Plan is available under the Company's SEDAR profile at
www.sedar.com
.
About the Kirkham Property
The wholly-owned 106 sq. km Kirkham Property is located about 65 km north of
Stewart, B.C.
, in the heart of the Golden Triangle's prolific
Eskay Camp
. The Property is prospective for multiple mineral deposit types and is located along a strategic geological boundary – the "Red-
line" exposed on the western margin of the Eskay Rift system in the Golden Triangle, northwestern
British Columbia
.
The northern border of Kirkham is contiguous to Garibaldi Resources' E&L Nickel Mountain Project. The northeast corner of Kirkham is within
12 km of the Eskay Creek mine while the eastern border is within 15 - 20 km of Seabridge Gold's KSM deposits and Pretium Resources'
Brucejack mine.
About Metallis
Metallis Resources Inc. is a
Vancouver
-based company focused on the exploration of gold, copper, nickel, and silver at its 100%-owned
Kirkham Property situated in northwest
British Columbia's
Golden Triangle. Metallis trades under the symbols MTS on the TSX Venture
Exchange, MTLFF on the OTCQB Exchange, and 0CVM on the Frankfurt Exchange. The Company currently has 43,343,767 common shares
issued and outstanding after the closing of the First Tranche.
On behalf of the Board of Directors:
/s/ "Fiore Aliperti"
Chief Executive Officer, President and Director
CAUTION REGARDING FORWARD-LOOKING STATEMENTS
This Press Release may contain statements which constitute 'forward-looking' statements, including statements regarding the plans, intentions,
beliefs and current expectations of the Company, its directors, or its officers with respect to the future business activities and operating
performance of the Company. The words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" and similar
expressions, as they relate to the Company, or its management, are intended to identify such forward-looking statements. Investors are
cautioned that any such forward-looking statements are not guarantees of future business activities or performance and involve risks and
uncertainties, and that the Company's future business activities may differ materially from those in the forward-looking statements as a result
of various factors. Such risks, uncertainties and factors are described in the periodic filings with the Canadian securities' regulatory authorities,
including quarterly and annual Management's Discussion and Analysis, which may be viewed on SEDAR at
www.sedar.com
. Should one or
more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual
results may vary materially from those described herein as intended, planned, anticipated, believed, estimated, or expected. Although the
Company has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be
others that cause results not to be as intended, planned, anticipated, believed, estimated or expected. The Company does not intend, and
does not assume any obligation, to update these forward-looking statements.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release. The TSX Venture Exchange has neither approved nor disapproved the contents of
this news release.
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SOURCE
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For further information:
Tel: 604-688-5077, Email: [email protected], Web: www.metallisresources.com
CO: Metallis Resources Inc.
CNW 15:34e 07-OCT-20