Metalex Closes Final Tranche of Private Placement and Shares for Debt Settlement
Metalex Closes Final Tranche of Private
Placement and Shares for Debt Settlement
KELOWNA, BC
,
Jan. 18, 2021
/CNW/ - Further to news releases on
December 11
and 17, 2020,
Metalex Ventures Ltd.
(TSXV: MTX) (the "
Company
") is pleased to announce the closing of the
final tranche of its private placement (the "
Placement
"), resulting in gross proceeds of
$1,219,560
.
This tranche of the Placement (the "Final Tranche") consisted of the issuance of 1,188,235 flow
through shares (the "Shares") and 15,979,427 non flow through units (the "Units"). The Shares were
sold at a price of
$0.085
per Share and the Units were sold at a price of
$0.07
per Unit; each Unit is
comprised of one common share and one-half warrant (each whole warrant a "Warrant") entitles the
holder to acquire a further common share of the Company at a price of
$0.10
for a term of two
years.
Combined with the first and second tranches, the Placement has resulted in gross proceeds of
$3,128,460
from the issuance of 19,163,528 Shares and 21,422,284 Units.
All securities issued in the final tranche of the Placement are subject to a hold period expiring
May
16, 2021
. Finders' fees of
$26,320
were paid and 100,000 finders' Warrants were issued in
connection with this tranche of the Placement. Finders' Warrants have the same terms as the
Placement Warrants.
Proceeds from the Placement will be applied to the upcoming exploration program on the Company's
Quebec
and South African properties, as well as for general working capital of the Company.
Further to the news release on
December 24, 2020
, the Company and Dr.
Charles Fipke
, the
Chairman of the Company, also announce that the Company has, concurrent with the closing of the
Final Tranche, settled
$2.75 million
in outstanding indebtedness owing to Kel-Ex Development Ltd., a
company owned by Dr. Fipke, through the issuance of 32,352,941 common shares at a deemed
price of
$0.085
per share (the "Debt Settlement"). These shares are subject to a hold period
expiring
May 16, 2021
. Prior to the Debt Settlement and the closing of the Final Tranche, Dr. Fipke
directly and indirectly held 45,114,924 common shares and 500,000 options of the Company (the
"Options") representing 37.45% of the outstanding shares of the Company (assuming exercise of the
Options). Following the Debt Settlement and closing of the Final Tranche, Dr. Fipke held 77,967,865
common shares of the Company representing 41.94% of the outstanding shares of the Company
(assuming exercise of the Options).
Depending on economic or market conditions, or matters related to the Company, Dr. Fipke advises
that he may, in the future, choose to either acquire additional securities or dispose of securities of
the Company; however, he has no current plans to dispose of any securities and to date has never
disposed of any shares of the Company.
For further information with respect to the Debt Settlement and to obtain a copy of the early warning
report filed under applicable securities legislation in connection with the Debt Settlement, please go
to the Company's profile on the SEDAR website (
www.sedar.com
) or contact
Jason Granger
at
250-860-8599.
Signed,
Charles Fipke
Charles Fipke
Chairman
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.
SOURCE
Metalex Ventures Ltd.
View original content:
http://www.newswire.ca/en/releases/archive/January2021/18/c6873.html
%SEDAR: 00008159E
For further information:
Chad Ulansky, President & CEO, +1-250-860-8599,
CO: Metalex Ventures Ltd.
CNW 09:00e 18-JAN-21