Moneta Announces Closing of Oversubscribed Financing
Moneta Announces Closing of Oversubscribed
Financing
TIMMINS, ON
,
July 24, 2020
/CNW/ -
Moneta Porcupine Mines Inc.
(TSX: ME) (OTC: MPUCF)
(XETRA: MOP)
("Moneta" or the "Company")
announced the closing of its oversubscribed non-
brokered private placement.
The Company issued 15,036,486 common shares at
$0.14
per share ("Common Shares") and
19,997,662 common shares at
$0.21
issued on a flow-through basis ("Flow Through Shares"), for
aggregate gross proceeds of
$6,304,617
(the "Placement").
Gary O'Connor
, CEO and Chief Geologist of Moneta commented, "The strong institutional interest in
Moneta reflects the exceptional exploration potential we have identified on our flagship Golden
Highway. With the closing of the financing, we will now expand our exploration program to accelerate
the increase in our gold resource base. We are pleased that Mr.
Eric Sprott
and other existing
institutional shareholders have shown continued support in increasing their ownership interest in the
Company and we welcome our new institutional investors."
The proceeds from the Flow Through Shares will be used to incur Canadian exploration expenditures
that are "flow-through mining expenditures", as defined in the Income Tax Act (
Canada
), on the
Company's Golden Highway project, which will be renounced to the subscribers with an effective
date no later than
December 31, 2020
. The proceeds from the Common Shares will be used for
exploration expenditures and general working capital purposes.
Mr.
Eric Sprott
subscribed to 6,428,600 shares in the private placement increasing his shareholding
in Moneta to 34,299,055, or 9.9% of the total shares outstanding. An account managed by Dundee
Goodman Merchant Partners also subscribed to 4,800,000 shares in the private placement.
Finders fees were paid in the amount of
$287,447
in cash and 2,002,192 broker warrants
exercisable at
$0.21
and expiring twenty four months following closing. Paradigm Capital, Dundee
Goodman Merchant Partners, XIII Capital and Industrial Alliance Securities acted as advisors to the
Company. The Placement is subject to a standard four month hold period and final regulatory
approval.
About Moneta
The Company holds a 100% interest in 6 core gold projects strategically located along the Destor-
Porcupine Fault Zone in the Timmins Gold Camp with over 85 million ounces of past gold production.
The projects consist of the Golden Highway,
North Tisdale
, Nighthawk Lake,
DeSantis East
,
Kayorum and Denton projects. The Golden Highway Project covers 12 kilometres of prospective
ground along the DPFZ of which 4 km hosts the current 43-101 mineral resource estimate
comprised of an indicated resource of 556,500 ounces gold contained within 3.82 Mt @ 4.53 g/t Au
and a total of 1,174,000 ounces gold contained within 8.47 Mt @ 4.31 g/t Au in the inferred category
at a 3.00 g/t Au cut-off. A preliminary economic assessment on the South West deposit located
within the Golden Highway Project commenced in Q1, 2020. The results of the PEA are due to be
delivered later in 2020. The study will review several development scenarios for the South West
deposit which was the subject of a resource update in
November 2019
.
The Company's public documents may be accessed at
www.sedar.com
. For further information on
the Company, please visit our website at
www.monetaporcupine.com
or email us at
.
SOURCE
Moneta Porcupine Mines Inc.
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%SEDAR: 00003301E
For further information:
PLEASE CONTACT: Gary V. O'Connor, CEO and Chief Geologist, 416-
357-3319; Ian C. Peres, President and CFO, 416-579-3040; Linda Armstrong, Investor Relations,
647-456-9223
CO: Moneta Porcupine Mines Inc.
CNW 13:15e 24-JUL-20