Omineca Closes $5.5 Million on Oversubscribed Brokered Private Placement Financing
Omineca Closes $5.5 Million on
Oversubscribed Brokered Private Placement
Financing
/NOT FOR DISTRIBUTION TO
UNITED STATES
NEWSWIRE SERVICES OR FOR
DISSEMINATION IN
THE UNITED STATES
./
SASKATOON, SK
,
Nov. 25, 2020
/CNW/ - Omineca Mining and Metals Ltd. (TSXV: OMM)
("
Omineca
" or the "
Company
"), announces that it has upsized and closed the previously announced
brokered private placement offering (the "
Offering
") of units of the Company (the "
Units
") and flow-
through units of the Company (the "
FT Units
") for aggregate gross proceeds to the Company of
$5,496,021.74
, including the full exercise of the Agent's option to increase the size of the Offering by
15% (the "
Agent's Option
"). The Offering was led by Mackie Research Capital Corporation (the
"
Agent
").
The Company intends to use the net proceeds from the sale of Units for its ongoing exploration
drilling program, working capital requirements and other general corporate purposes. The primary
focus of Omineca's lode gold exploration program at the Wingdam gold project is locating the
presumed multiple bedrock sources of placer gold recovered by Omineca in the 2012 underground
bulk sampling program. The systematic exploration work program also includes rock sampling, soil
grid sampling, channel/saw cut sampling, mapping and geophysics.
The maiden diamond drill program to explore for the multiple potential hard rock sources of the
placer gold found at Wingdam is currently underway with 9 drill holes of a planned 27 hole program
completed to date.
The gross proceeds received by the Company from the sale of the FT Units will be used to incur
eligible "Canadian exploration expenses" ("
CEE
") that are "flow-through mining expenditures" (as
such term is defined in the
Income Tax Act (
Canada
)
) related to the Wingdam gold project. The
Company will renounce such CEE to the purchasers of the FT Units with an effective date of no later
than
December 31, 2020
.
Pursuant to the Offering, the Company issued 10,171,673 Units at a price of
$0.28
per Unit and
8,826,511 FT Units at a price of
$0.30
per FT Unit. Each Unit is comprised of one common share of
the Company (a "
Common Share
") and one-half of one Common Share purchase warrant (each
whole warrant, a "
Warrant
"). Each FT Unit consists of one "flow-through" common share of the
Company that will qualify as a "flow through share" within the meaning of subsection 66(15) of the
Income Tax Act
(
Canada
) (each, a "
FT Common Share
") and one-half of one Warrant. Each
Warrant is exercisable to acquire one Common Share (a "
Warrant Share
") at a price of
$0.35
per
Warrant Share for a period of 24 months from the closing of the Offering.
The Units, FT Units, and the underlying securities comprising the Units and FT Units issued under the
Offering are subject to a statutory hold period expiring on
March 26, 2021
.
In connection with the Offering, the Company has paid to the Agent a cash commission of 7% of the
gross proceeds. In addition, the Company issued to the Agent 1,204,872 non-transferable
compensation options (the "
Compensation Options
") (including in respect of the full exercise of the
Agent's Option). Each Compensation Option entitles the holder thereof to purchase one Unit (a
"
Compensation Option Unit
") at an exercise price per Compensation Option Unit equal to
$0.28
for
a period of 24 months following the closing. The securities issued to the Agent are subject to a hold
period expiring
March 26, 2021
.
Omineca advises that the insiders of the company participated in the Offering, which was completed
pursuant to available related party exemptions under Multilateral Instrument 61-101.
About Omineca Mining and Metals Ltd.
Omineca Mining and Metals Ltd. controls its flagship Wingdam Project and the Fraser Canyon
Project through its wholly owned subsidiary CVG Mining Ltd. The Wingdam Project is located 45 km
east of Quesnel B.C. on the Barkerville highway. The property includes both placer and hard-rock
tenures along the Lightning Creek valley, where topographic conditions created a thick overburden
which preserved a large portion of the channel from conventional surface placer mining activity.
This news release does not constitute an offer to sell, or the solicitation of an offer to buy securities
in any jurisdiction in which such offer or solicitation would be unlawful prior to registration or
qualification under the securities laws of such jurisdiction.
The securities described herein have not been, and will not be, registered under the United
States Securities Act of 1933, as amended (the "
Securities Act
"), or the securities laws of any
state of the
United States
, and may not be offered or sold in the United States or to, or for the
account or benefit of, any U.S. Person (as defined in Regulation S of the Securities Act) or a
person in the
United States
, unless an exemption from such registration requirements is available.
Forward Looking Statements
This release includes forward-looking statements regarding Omineca and its business. Such
statements are based on the current expectations and views of future events of Omineca's
management. In some cases, the forward-looking statements can be identified by words or
phrases such as "may", "will", "expect", "plan", "anticipate", "intend", "potential", "estimate",
"believe" or the negative of these terms, or other similar expressions intended to identify forward-
looking statements. The forward-looking events and circumstances discussed in this release may
not occur and could differ materially as a result of the failure to consummate additional project
financing, the economic feasibility of the Wingdam Project, known and unknown risk factors and
uncertainties affecting Omineca, including risks regarding the resource industry, economic factors
and the equity markets generally and many other factors beyond the control of Omineca. No
forward-looking statement can be guaranteed. Forward-looking statements and information by their
nature are based on assumptions and involve known and unknown risks, uncertainties and other
factors which may cause our actual results, performance or achievements, or industry results, to
be materially different from any future results, performance or achievements expressed or implied
by such forward-looking statement or information. Accordingly, readers should not place undue
reliance on any forward-looking statements or information. Forward-looking statements speak only
as of the date on which they are made and Omineca undertakes no obligation to publicly update or
revise any forward-looking statement, whether as a result of new information, future events, or
otherwise, except as required by applicable securities laws.
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
Omineca Mining and Metals Ltd
View original content to download multimedia:
http://www.newswire.ca/en/releases/archive/November2020/25/c6086.html
%SEDAR: 00031647E
For further information:
Tom MacNeill, President and CEO, 1 (306) 653-2692; Andrew Davidson,
Chief Financial Officer, 1 (306) 653-2692; Dean Nawata, Vice President, Business Development, 1
(604) 561-2821, [email protected]
CO: Omineca Mining and Metals Ltd
CNW 11:36e 25-NOV-20