San Marco Arranges $2 Million Flow-Through Private Placement Financing
San Marco Arranges $2 Million Flow-Through
Private Placement Financing
Vancouver, British Columbia--(Newsfile Corp. - June 29, 2020) -
San Marco Resources Inc. (TSXV:
SMN) announces it has arranged a non-brokered private placement consisting of: (i) "charity flow-
through" Units at a price of $0.34 each (the "
Charity FT Unit Offering
") and (ii) "flow-through" Units at
a price of $0.26 each (the "
FT Unit Offering
" and, together with the Charity FT Unit Offering, the
"
Offering
") for gross aggregate proceeds of $2 million. Eventus Capital Corp. has been appointed as
a finder in connection with the Offering and will be paid a 7% cash fee and issued that number of
compensation warrants (having the terms described below) equal to 7% of the Units sold.
Each Unit will consist of one 'flow-through' common share and one half of a common share purchase
warrant. Each whole warrant (a "
Warrant
") will entitle the purchase of one (non-flow-through) common
share for 24 months at a price of $0.34. If the closing price of the Company's common shares
("
Common Shares
") is greater than $0.70 for 10 consecutive trading days, San Marco will have the
right to accelerate the expiry date of the Warrants by giving notice, via a new release, to the
Warrantholders that the Warrants will expire 30 days after the issuance of the news release. The
compensation warrants will be exercisable for two years at a price of $0.26 per share and will not be
subject to the acceleration provision.
Common Shares comprising part of the Units issued under the Charity FT Unit Offering and FT Unit
Offering will qualify as 'flow through shares' ("
Flow Through Shares
") under the
Income Tax Act
(Canada). The gross proceeds from the Offering will be used to incur 'Canadian exploration expenses'
that will qualify as 'flow through mining expenditures' under the
Income Tax Act
and will be renounced
to the initial purchasers of the Flow Through Shares.
Proceeds of the Offering will be used for funding exploration of the Company's Buck Property. Closing
of the Offering is expected on or about July 21, 2020. All the securities issued pursuant to the Offering
will be subject to a four month restricted resale period. Completion of the placement is subject to the
approval of the TSX Venture Exchange.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the
securities in the United States of America. The securities have not been and will not be registered
under the United States Securities Act of 1933, as amended, (the "U.S. Securities Act") or any state
securities laws and may not be offered or sold within the United States or to U.S. Persons (as defined
in the U.S. Securities Act) unless registered under the U.S. Securities Act and applicable state
securities laws, or an exemption from such registration requirement is available
About San Marco
San Marco is a Canadian mineral exploration company actively pursuing world class gold, silver, zinc
and copper projects with a focus in mining friendly jurisdictions in both British Columbia, Canada and
Mexico.
The Company's principal focus and asset is the recently optioned Buck Property in north-central
British Columbia that has large tonnage gold-silver-zinc potential in a mining-friendly region and
includes many former and current operating mines. The Company's portfolio also includes the several
prospective, early stage exploration properties in Mexico.
San Marco is committed to environmental and social responsibility with a focus on responsible
development to generate positive outcomes for all stakeholders.
Further details are available at
www.sanmarcocorp.com
For further information, contact:
Sharyn Alexander, M.Sc.
VP Technical Services
Nancy Curry
Corporate Communications
Tel. 778-588-9606
Forward Looking Information
Information set forth in this document may include forward-looking statements. While these statements
reflect management's current plans, projections and intents, by their nature, forward-looking
statements are subject to numerous risks and uncertainties, some of which are beyond the control of
San Marco Resources Inc. Readers are cautioned that the assumptions used in the preparation of
such information, although considered reasonable at the time of preparation, may prove to be
imprecise and, as such, undue reliance should not be placed on these forward-looking statements.
San Marco's actual results, programs, activities and financial position could differ materially from
those expressed in or implied by these forward-looking statements.
Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada
accepts responsibility for the adequacy or accuracy of this release.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/58757