Tectonic Announces Strategic Investment By Crescat Capital As Part Of A C$3.5 Million Non-brokered Private Placement
Tectonic Announces Strategic Investment By
Crescat Capital As Part Of A C$3.5 Million
Non-brokered Private Placement
/NOT FOR DISTRIBUTION TO
UNITED STATES
NEWS WIRE SERVICES OR FOR
DISSEMINATION IN
THE UNITED STATES
/
VANCOUVER, BC
,
May 10, 2021
/CNW/ -
Tectonic Metals Inc.
(TSXV: TECT) (OTCQB: TETOF)
(FSE: T15B) ("Tectonic" or the "Company") is excited to announce Crescat Capital LLC ("Crescat")
as a new strategic investor in the Company as part of a
C$3,500,000
non-brokered private
placement of units issued by Tectonic.
Tony Reda
, President & CEO of Tectonic stated, "We are honored and extremely pleased to
welcome Crescat Capital as a strategic shareholder in Tectonic. Our focus has always been on
acquiring high-quality shareholders and Crescat's reputation for investment and technical expertise is
a compelling endorsement of Tectonic. Advised by renowned geologist Dr.
Quinton Hennigh
,
Crescat's investment demonstrates its confidence in our team's ability to execute on our plans - even
more so this year as Tectonic's exploration work has significantly advanced the drill targets at both
Tibbs and Seventymile, and our understanding of the targets is now in the best position it has been
since we acquired them."
Kevin C. Smith
, CFA, Member and Chief Investment Officer of Crescat commented, "We love the
high-grade gold targets that Tectonic will aggressively pursue this season. Soil anomalies and
previous drill results indicate potential mineralized systems on these properties with characteristics
akin to both Pogo and Ft. Knox, the two big producing mines in
Alaska
. Historic drilling at Tibbs
produced high-grade gold intercepts which remain open, and which have not been followed up on
since 2013. Why? Because the gold market and exploration budgets were tanking back then. Based
on our macro work, we believe the precious metals market is poised for an upward inflection today.
There is no better time than the present to build on Tectonic's work in this prolific region."
Dr.
Quinton Hennigh
, Technical Advisor to Crescat, stated, "Tectonic's Tibbs gold project appears to
host a very strong intrusion-related lode gold system displaying a close temporal and spatial
association with intrusive activity and favorable high and low-angle structural architecture. These
same ingredients come together to make the nearby world class Pogo gold deposit. Given that there
are multiple historic drill holes at Tibbs yielding +100 gram-meter intercepts, this may be an incipient
discovery that has simply fallen through the cracks, but that could prove a very exciting story in the
current bull gold cycle. We are delighted to see Tectonic pursue aggressive plans to drill at Tibbs
this coming season."
The Offering
The Company is conducting a non-brokered private placing of up to 35,000,000 Units (the "Units") at
a price of
C$0.10
per unit for aggregate gross proceeds of up to
C$3,500,000
(the "Offering"). Each
unit is comprised of one common share of Tectonic and one-half common share purchase warrant
(each whole warrant, a "Warrant"). Each whole Warrant will be exercisable for a common share at
an exercise price of
C$0.17
and will expire two years from the closing date of the private placement.
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$0.30
or greater
for a period of twenty (20) 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 30 days from the date
of issuance of a news release by Tectonic announcing the accelerated exercise period.
On closing of the Offering, Crescat will be granted a pre-emptive right to maintain its pro-rata
interest pursuant to the terms of an investment agreement with the Company for as long as Crescat
owns more than 5% of the common shares of Tectonic (calculated on a partially diluted basis).
The net proceeds of the Offering will be used to advance the Company's Tibbs and Seventymile
properties and for general working capital. Closing is subject to the conditional acceptance of the
TSXV. All securities issuable under the Offering will be subject to a four-month hold period from the
date of closing.
This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall
there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be
unlawful prior to registration or qualification under the securities laws of any such jurisdiction. This
news release shall not constitute an offer to sell or the solicitation of an offer to buy any securities in
the United States
. The securities being offered have not been, nor will they be, registered under the
United States Securities Act of 1933, as amended, or under any state securities laws in
the United
States
, and such securities may not be offered or sold within
the United States
absent registration
under U.S. federal and state securities laws or an applicable exemption from such U.S. registration
requirements.
About Crescat
Crescat is a global macro asset management firm headquartered in
Denver, Colorado
, which
deploys tactical investment themes based on proprietary value-driven equity and macro models.
Crescat's investment goals are to provide industry leading absolute and risk-adjusted returns over
complete business cycles with low correlation to common benchmarks and they apply their
investment process across a mix of asset classes and strategies. Crescat is taking activist stakes in
the precious metals exploration industry today as one of its key macro themes.
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.
Tectonic believes that responsible mineral exploration and development can positively impact the
communities in which the company lives and operates and is committed to early and ongoing
community engagement, best practices in environmental stewardship and the development of a
strong safety culture. 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.
On behalf of Tectonic Metals Inc.,
Tony Reda
President and Chief Executive Officer
Facebook:
https://www.facebook.com/TectonicMetals/
Twitter:
https://twitter.com/TectonicMetals
Instagram:
https://www.instagram.com/tectonicmetals/
LinkedIn:
https://www.linkedin.com/company/tectonic-metals
Cautionary Note Regarding Forward-Looking Statements and Historical Information
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 potential
for mineralization at Tectonic's projects, any future exploration activities and the size and timing of
the completion of the Private Placement.
The Company makes no representation or warranty
regarding the accuracy or completeness of any historical data from prior exploration undertaken by
others other than the company and has not taken any steps to verify, the adequacy, accuracy or
completeness of the information provided herein and, under no circumstances, will be liable for
any inaccuracies or omissions in any such information or data, any delays or errors in the
transmission thereof, or any loss or direct, indirect, incidental, special or consequential damages
caused by reliance on this information or the risks arising from the stock market.
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, 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 its 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.]
SOURCE
Tectonic Metals Inc.
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For further information:
about Tectonic Metals Inc. or this news release, please visit our website
at www.tectonicmetals.com or contact Bill Stormont, Investor Relations, at toll-free 1.888.685.8558
or by email at [email protected]
CO: Tectonic Metals Inc.
CNW 08:30e 10-MAY-21