San Marco Closes Oversubscribed $4,000,000 Flow-Through Private Placement
San Marco Closes Oversubscribed $4,000,000
Flow-Through Private Placement
Vancouver, British Columbia--(Newsfile Corp. - July 24, 2020) -
San Marco Resources Inc. (TSXV:
SMN) is pleased to announce that it has closed its previously announced non-brokered "flow through"
private placement. The placement was oversubscribed and consisted of: (i) 6,498,000 "charity flow-
through" Units at a price of $0.34 each (the "
Charity FT Unit Offering
") and (ii) 7,257,285 "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 $4,096,214.10. Eventus Capital Corp. acted
as a finder in connection with the Offering and received a 7% cash fee and that number of compensation
warrants equal to 7% of the number of Units that it placed.
Bob Willis, CEO and director, stated, "This is a very exciting time for all San Marco shareholders as we
are now fully financed for a 10,000m drill program scheduled to start very shortly. We welcome our new
strong institutional investor base and are looking forward to expand on the excellent results to date at the
Buck Property."
Each Unit consisted of one 'flow-through' common share and one half of a common share purchase
warrant. Each whole warrant (a "
Warrant
") entitles 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 is greater
than $0.70 for 10 consecutive trading days, San Marco has 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 in respect of those issued under the FT Unit Offering and $0.34 per share in
respect of those issued under the Charity FT Unit Offering and will not be subject to the acceleration
provision.
Common shares comprising part of the Units issued under the 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. All the
securities issued and issuable pursuant to the Offering will be subject to a four month restricted resale
period expiring on November 24, 2020. San Marco also paid 7% finder's fees and issued 7% in
compensation warrants to Haywood Securities Inc., National Bank Financial Inc. and T-Bone Ventures
Inc., which acted as finders under the FT Unit Offering.
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 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/60436