Benchmark Announces Second Closing for Its Oversubscribed Offering of Hard Dollar Units and Flow-Through Units
Benchmark Announces Second Closing for Its
Oversubscribed Offering of Hard Dollar Units
and Flow-Through Units
Edmonton, Alberta--(Newsfile Corp. - September 25, 2020) -
Benchmark Metals Inc.
(TSXV: BNCH)
(OTCQB: BNCHF) (WKN: A2JM2X) (the "
Company
" or "
Benchmark
") further to the Company's press
release dated September 18, 2020, Benchmark is pleased to announce that it has closed the second
tranche of its private placement (the "
Offering
"), issuing a further 2,000,000 hard dollar units at $1.30
(the "
HD Units
") and 1,161,128 flow-through A units at $1.56 (the "
FT Units
") (the HD Units and FT
Units, collectively, the "
Units
") for gross proceeds of $4,411,360. Gross proceeds from the first and
second tranche total $45,867,660. The Company expects to close a third and final tranche to complete
the Offering shortly.
Net proceeds of the Offering will be utilized to fast-track the Lawyers gold-silver project towards a
production decision in 2022.
Major milestones and work programs planned over the next two (2) years
include:
Permitting, engineering and baseline environmental activities already in progress;
2020 - drilling expanded up to 100,000 drilling metres;
2021, Q1 - Mineral Resource Estimate;
2021, Q2 - Preliminary Economic Assessment (PEA);
2021 - 200,000 metres of drilling; and
2022 - updated Mineral Resource Estimate and Feasibility Study (FS).
The gross proceeds from the sale of the FT Units will be used only to finance further qualifying Canadian
exploration expenditures on the Lawyers Property by no later than December 31, 2021, and will qualify
as "flow-through mining expenditures" as defined under subsection 127(9) of the
Income Tax Act
(Canada) and subsection 4.721(1) of the
Income Tax Act
(B.C.).
The brokered Offering is being completed pursuant to an agency agreement dated September 18, 2020
between the Company, Sprott Capital Partners LP as lead agent (the "
Lead Agent
"), Clarus Securities
Inc. and PI Financial Corp. (collectively with the Lead Agent, the "
Agents
").
Each HD Unit and FT Unit consists of one (1) common share of the Company (a "
Share
") and one-half
(1/2) of a transferable warrant of the Company (a "
Warrant
"). Each Warrant is exercisable to purchase
one (1) additional Share at an exercise price of $1.80 per Share until September 25, 2022. The Shares
and Warrants comprising the Units, and the non-transferable compensation warrants issued to the
Agents in connection with the Offering, are subject to a hold period until January 26, 2021, in accordance
with applicable securities laws.
About Benchmark Metals Inc.
Benchmark is a Canadian mineral exploration company with its common shares listed for trading on the
TSX Venture Exchange in Canada, the OTCQB Venture Market in the United States, and the Tradegate
Exchange in Europe.
Benchmark is managed by proven resource sector professionals, who have a track
record of advancing exploration projects from grassroots scenarios through to production.
ON BEHALF OF THE BOARD OF DIRECTORS
s/ "John Williamson"
John Williamson
, Chief Executive Officer
For further information, please contact:
Jim Greig, President
Tel: (604) 260-6977
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.
This news release may contain certain "forward-looking statements". Forward-looking statements
involve known and unknown risks, uncertainties, assumptions and other factors that may cause the actual
results, performance or achievements of the Company to be materially different from any future results,
performance or achievements expressed or implied by the forward-looking statements. Any forward-
looking statement speaks only as of the date of this news release and, except as may be required by
applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking
statement, whether as a result of new information, future events or results or otherwise. Forward-looking
statements in this news release include, but are not limited to, the closing of the third and final tranche to
complete the Offering.
This news release does not constitute an offer to sell or a solicitation of an offer to buy nor shall there
be any sale of any of the securities in any jurisdiction in which such offer, solicitation or sale would be
unlawful, including 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 "
1933
Act
") or any state securities laws and may not be offered or sold within the United States or to, or for
account or benefit of, U.S. Persons (as defined in Regulation S under the 1933 Act) unless registered
under the 1933 Act and applicable state securities laws, or an exemption from such registration
requirements is available
.
Not for distribution to United States newswire services or for dissemination in the United States.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/64646