"Company") and Doyon, Ltd ("Doyon"), one of Alaska's largest Native Regional Corporations, are
Tectonic Metals Announces Milestone
Strategic Financing with Alaska Native
Regional Corporation, Doyon, Ltd.
/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN
THE
UNITED STATES
/
VANCOUVER
,
April 15, 2020
/CNW/ -
Tectonic Metals Inc. (TECT: TSX-V)
("Tectonic" or the
"Company") and
Doyon, Ltd
("Doyon"), one of
Alaska's
largest Native Regional Corporations, are
pleased to announce that Doyon will be Tectonic's largest, single shareholder upon closing of a
C$2,094,600
(USD$1,500,000)
strategic investment into Tectonic that grants Doyon a 22.3%
ownership in Tectonic on a partially diluted basis.
Tectonic and Doyon CEO interview, please click to view:
https://youtu.be/THC9HaW40-c
Video: “Relationships are flourishing in the space right now, and the strongest will survive; this is one
such example.”
Click image to play video
Tectonic and Doyon CEO Live Webinar
Tectonic and Doyon are hosting a live webinar on
Tuesday, April 21
st
at
11:00 am EDT
/
2:00 pm
PST
. The CEOs of both companies will be presenting and will be available to answer questions
following the presentation. Online registration and participation details are available by clicking the
following link:
https://bit.ly/2xiiJS0
For those unable to participate, a recording of the webinar will be posted to the Company's website,
www.tectonicmetals.com
,
following the live broadcast.
Tectonic's President and CEO,
Tony Reda
, says
, "With Doyon as a significant shareholder,
Tectonic is positioned to build value during one of the most challenging economic climates the world
has ever experienced. This landmark deal is just one step of many continuing to unfold that
strengthens the partnership between Tectonic and Doyon as we explore the rich mineral potential of
Alaska
together. We are honoured and excited to have Doyon as a shareholder and partner as we
continue our endeavour to be a pioneering mineral exploration company committed to high standards
of environmental stewardship, early and ongoing community engagement and maximizing social and
economic benefits to the communities in which we live and operate in."
Doyon's President and CEO,
Aaron Schutt
, states
, "It's a joy to work on something positive like
this in the midst of dealing with daily issues arising from COVID-19. The team at Tectonic has a
proven track record in finding resources and working closely with First Nations in the North. Life,
business and strong relationships such as Doyon's and Tectonic's will continue and thrive post-
COVID-19. We are pleased to deepen the partnership with Tectonic and look forward to working
with them for many years to come."
Doyon's Chief Financial Officer,
Patrick Duke
, comments
, "This investment in Tectonic reflects
Doyon's goal of responsible economic development in our region by exploring for natural resources
while also protecting and enhancing our land."
The Financing and Pre-Emptive Right to Maintain
Doyon has agreed to purchase 10,473,000 units of Tectonic for a subscription price of
C$0.20
per
unit. Each unit is comprised of one common share of Tectonic and one-half common share purchase
warrant (each whole warrant, a "Warrant"). Each Warrant will have an exercise price of
C$0.40
and
will expire two years from the date of closing.
The Warrants are subject to an acceleration clause whereby if the volume-weighted average trading
price of Tectonic's common shares on the TSX Venture Exchange (the "TSXV") is
C$0.56
or greater
for a period of ten (10) consecutive trading days (whether or not trading occurs on all such days),
Tectonic has the right to accelerate the expiry date of the Warrants to thirty (30) days from the date
of issuance of a news release by Tectonic announcing the accelerated exercise period.
Doyon has agreed not to exercise any Warrants if as a result of such exercise it causes Doyon to
hold more than 19.99% of the total outstanding common shares of Tectonic, together with all other
common shares beneficially held by Doyon, directly or indirectly, unless and until the shareholders of
Tectonic have passed a resolution approving such exercise of the Warrants in accordance with the
applicable rules and policies of the TSXV.
On closing of the Financing, Doyon will be granted a pre-emptive right to maintain its pro-rata
interest pursuant to the terms of the investment agreement for as long as Doyon owns more than
10.0% of the common shares of Tectonic (calculated on a partially diluted basis).
Proceeds from the Financing will be used for general working capital. Closing is subject to the
conditional acceptance of the TSXV.
Early Warning Report
Prior to closing the Financing, Doyon does not hold any common shares in Tectonic. Upon closing of
the Financing, Doyon will purchase 10,473,000 Units for
C$0.20
per Unit, for aggregate gross
proceeds to Company of
C$2,094,600
, and Doyon will own 10,473,000 common shares
representing approximately 16.1% of Tectonic's outstanding common shares and Warrants to
acquire 5,236,500 common shares of the Company. Assuming the exercise in full of the Warrants
and a resolution approving such exercise of the Warrants has been passed by the shareholders of
Tectonic, Doyon would own 15,709,500 common shares representing approximately 22.3% of the
Tectonic's current issued and outstanding common shares.
The head office address of Tectonic is 312-744 West Hastings Street,
Vancouver, BC
, V6C 1A5,
Canada
. The head office address of Doyon is 1 Doyon Place, Suite 300 Fairbanks, Alaska 99701-
2941,
USA
.
Doyon acquired the common shares for investment purposes and may, from time to time, buy
additional securities of Tectonic or dispose of such securities as may be deemed appropriate. The
additional material terms of the Financing are described above.
A copy of the Early Warning Report filed under applicable securities laws will be available under the
Tectonic's profile on SEDAR at
www.sedar.com
.
How It All Began
Tectonic and Doyon initially partnered in the summer of 2018, where Tectonic was granted exclusive
rights to explore, develop and mine all minerals, ores and mineral products extracted from Tectonic's
Seventymile and Northway Projects, which are situated on Doyon land. Forming partnerships and
establishing production agreements on Tectonic's early-stage projects at the onset is a critical
component of Tectonic's business model. Such discovery-to-production agreements manage risks
and align the interests and expectations of all parties involved, so the task of advancing a project
from discovery through to the development of a mine is more streamlined.
About Doyon
With more than 12.5 million acres of land and over 20,000 shareholders, Doyon is the largest private
landholder in
Alaska
and one of the largest in
North America
. Doyon's mission is to continually
enhance their position as a financially secure Native Corporation and promote the economic and
social well-being of their shareholders and future shareholders. They focus on strengthening the
Native way of life and protecting and enhancing their land and resources.
About Tectonic
Tectonic Metals Inc. is a mineral exploration company created and operated by an experienced and
well-respected technical and financial team with a track record of wealth creation for shareholders.
Key members of the Tectonic team were involved with Kaminak Gold Corporation, the Company that
raised
C$165 million
to fund the acquisition, discovery and advancement of the Coffee Gold Project
in the
Yukon Territory
through to the completion of a bankable feasibility study before selling the
multi-million-ounce gold project to Goldcorp Inc. (now Newmont Goldcorp) for
C$520 million
in 2016.
Tectonic is focused on the acquisition, exploration, discovery and development of mineral resources
from district-scale projects in politically stable jurisdictions that have the potential to host world-class
orebodies.
Whether at home or at work, the Tectonic team is grounded on the following core values: passion,
integrity, patience, focus, perseverance, honesty, fairness, accountability, respect and a play big
mindset. The Company works for its shareholders and is committed to creating value for them.
This news release does not constitute an offer to sell, solicitation or 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
.
On behalf of Tectonic Metals Inc. and Doyon, Limited,
Tony Reda
President and Chief Executive Officer of Tectonic Metals Inc.
Aaron Schutt
President and Chief Executive Officer of Doyon, Limited
For further information about Tectonic Metals Inc. or this news release, please visit Tectonic's
website at
www.tectonicmetals.com
or contact
Tony Reda
, President & CEO of Tectonic, at toll-
free 1.888.858.9887 or by email at
Follow Tectonic Metals on
,
,
and
Cautionary Note Regarding Forward-Looking Statements
Certain information in this news release constitutes forward-looking information and statements
under applicable securities law. Any statements that are contained in this news release that are not
statements of historical fact may be deemed to be forward-looking statements. Forward-looking
statements are often identified by terms such as "may", "should", "anticipate", "expect", "intend"
and similar expressions and include, but are not limited to, statements with respect to the
Company's future economic performance, the companies plans for exploration and development,
the benefits of a partnership with Doyon and the closing of the Financing. Forward-looking
information is not a guarantee of future performance and is based upon a number of estimates and
assumptions of management at the date the statements are made including, among others,
assumptions about future prices of gold and other metal prices, currency exchange rates and
interest rates, favourable operating conditions, political stability, obtaining governmental and other
approvals and Financing on time, obtaining required licenses and permits, labour stability, stability
in market conditions, availability of equipment, the accuracy of any mineral resources, successful
resolution of disputes and anticipated costs and expenditures. Many assumptions are based on
factors and events that are not within the control of Tectonic, and there is no assurance they will
prove to be correct.
Although Tectonic considers these beliefs and assumptions to be reasonable based on information
currently available to it, they may prove to be incorrect, and the forward-looking statements in this
release are subject to numerous risks, uncertainties and other factors that may cause future results
to differ materially from those expressed or implied in such forward-looking statements. Forward-
looking statements necessarily involve known and unknown risks, including, without limitation: the
Company's ability to implement its business strategies; risks associated with mineral exploration
and production; risks associated with general economic conditions; adverse industry events;
marketing and transportation costs; loss of markets; volatility of commodity prices; inability to
access sufficient capital from internal and external sources, and/or inability to access sufficient
capital on favourable terms; industry and government regulation; changes in legislation, income
tax and regulatory matters; competition; currency and interest rate fluctuations; and other risks.
Readers are further cautioned not to place undue reliance on forward-looking statements as there
can be no assurance that the plans, intentions or expectations upon which they are placed will
occur. Such information, although considered reasonable by management at the time of
preparation, may prove to be incorrect and actual results may differ materially from those
anticipated. Forward-looking statements contained in this news release are expressly qualified by
this cautionary statement. Although Tectonic has attempted to identify important factors that could
cause actual results to differ materially from those contained in forward-looking information, there
may be other factors that cause results not to be as anticipated, estimated or intended. There can
be no assurance that such information will prove to be accurate, as actual results and future events
could differ materially from those anticipated in such statements. Accordingly, readers should not
place undue reliance on forward-looking information. Tectonic does not undertake to update any
forward-looking information, except in accordance with applicable securities laws.
Neither the TSX Venture Exchange nor 'it's Regulation Service Provider (as that term is
defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy
or accuracy of this release.
Doyon, Limited (CNW Group/Tectonic Metals Inc.)
SOURCE
Tectonic Metals Inc.
View original content to download multimedia:
http://www.newswire.ca/en/releases/archive/April2020/15/c3436.html
%SEDAR: 00045228E
CO: Tectonic Metals Inc.
CNW 08:30e 15-APR-20