Rackla Metals completes final tranche of Private Placement Financing, raising a total of $4.65 million
Rackla Metals completes final tranche of Private Placement
Financing, raising a total of $4.65 million
Vancouver, British Columbia – June 12, 2024 – Rackla Metals Inc. (TSX-V: RAK) (the “Company”) is pleased
to announce that it has closed the final tranche (the “Final Tranche”) of its previously announced private
placement financing (the “Offering”), raising $2,906,184 with the issuance of 5,966,534 hard-dollar units
(the “ HD Units ”) at $0.15 each and 11,830,611 flow -through units (the “ FT Units ”) at $0.17 each.
Combined with the proceeds from the charity flow -through tranche of the Offering which closed on
May 30, 2024, the Company has raised total gross proceeds of $4,656,184 , of which $3,761,204 is flow -
through funds.
Each unit issued in the Final Tranche consists of one common share of the Company and one warrant
which entitles the holder to purchase one additional common share of the Company at a price of $0.20
until June 11, 2025. The common share in each FT Unit qualifies as a “flow -through share” within the
meaning of subsection 66(15) of the Income Tax Act (Canada).
The flow-through proceeds received by the Company from the Offering will be used to incur eligible
“Canadian exploration expenses” that qualify as Canadian exploration expenses and “flow-through mining
expenditures” for the purposes of the Income Tax Act (Canada) on or before December 31, 2025 (or such
other period as may be permissible under applicable tax legislation).
Management intends to use the net proceeds of the Offering for conducting exploration and drilling on
the Company’s Tombstone Gold Belt properties within the Selwyn Basin in the coming year, and for
continuing investigations of additional mineral properties for acquisition. As well, proceeds from the sale
of the HD Units may be used for general working capital and corporate purposes.
Simon Ridgway, CEO commented: “We are pleased to close this upsized financing and express our
appreciation for the participation by our current shareholders and also welcome new shareholders,
including new investors from Europe. Company geologists will be mobilizing to camp June 13 and the drill
will be turning the first week of July. The Company is excited to be testing Reduced Intrusion-Related Gold
System (RIRGS) mineralization at the HIT and Peak targets.”
In connection with the Offering, the Company has paid finder’s fees totalling $89,613 cash and 545,247
finder’s warrants with the same terms as the Unit warrants described above. The securities issued in the
Final Tranche are subject to a resale restriction until Octobe r 12, 2024. The Offering remains subject to
the final approval of the TSX Venture Exchange.
As one of the placees is deemed to be a “related party” to the Company, the Offering constitutes a “related
party transaction” within the meaning of TSX Venture Exchange Policy 5.9 and Multilateral Instrument 61-
101 Protection of Minority Security Holders in Special Transactions (“MI 61-101”). The Company has relied
on exemptions from the formal valuation and minority shareholder approval requirements of MI 61-101
contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101.
Suite 650 – 200 Burrard Street
Vancouver BC Canada V6C 3L6
www.racklametals.com
T 604.801.5432
F 604.662.8829
TF 1.888.627.9378
RAK:TSX.V
-2-
About Rackla
Rackla Metals Inc. (TSX -V: RAK) is a Vancouver, Canada based junior gold exploration company. The
Company is targeting Reduced Intrusion-Related Gold System (RIRGS) mineralization on the southeastern
part of the Tombstone Gold B elt in eastern Yukon and western Northwest Territories. Management
believes that this area, which is underexplored for R IRGS deposit types, has the potential to be the next
frontier for their discovery.
ON BEHALF OF THE BOARD
Simon Ridgway,
CEO and Director
Tel: (604) 801-5432; Fax: (604) 662-8829
Email: [email protected]
Website: www.racklametals.com
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the
TSX Venture Exchange) accept responsibility for the adequacy or accuracy of this press release.
Forward-Looking Information
Certain statements contained in this news release constitute forward -looking statements within the meaning of
Canadian securities legislation. All statements included herein, other than statements of historical fact, are forward-
looking statements and include, without limitation, statements about the Company’s proposed exploration activities
and the use of the Offering proceeds . Often, but not always, these forward looking statements can be identified by
the use of words such as “estimate”, “estimates”, “estimated”, “potential”, “open”, “future”, “assumed”,
“projected”, “used”, “detailed”, “has been”, “gain”, “upgraded”, “offset ”, “limited”, “contained”, “reflecting”,
“containing”, “remaining”, “to be”, “periodically”, or statements that events, “could” or “should” occur or be
achieved and similar expressions, including negative variations.
Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the
actual results, performance or achievements of the Company to be materially different from any results,
performance or achievements expressed or implied by forward-looking statements. Such uncertainties and factors
include, among others, changes in general economic conditions and financial markets; the Company or any joint
venture partner not having the financial ability to meet its exploration and development goals; risks associated with
the results of exploration and development activities, estimation of mineral resources and the geology, grade and
continuity of mineral deposits; unanticipated costs and expenses; and such other risks detailed from time to time in
the Company’s quarterly and annual filings with securities regulators and available under the Company’s profile on
SEDAR+ at www.sedarplus.ca. Although the Company 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 based on the assumptions, beliefs, expectations and opinions of
management, including but not limited to: that the Company’s stated goals and planned exploration activities at its
properties will be achieved; that there will be no material adverse change affecting the Company or its properties;
and such other assumptions as set out herein. Forward -looking statements are made as of the date hereof and the
Company 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 law. There can be no assurance that
forward-looking statements will prove to be accurate, as actual results and future events could differ materially from
those anticipated in such statements. Accordingly, investors should not place undue reliance on forward -looking
statements.