Tectonic Metals Announces Non-Brokered Private Placement Financing to Fund Upcoming Drill Programs
Tectonic Metals Announces Non-Brokered
Private Placement Financing to Fund
Upcoming Drill Programs
/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN
THE
UNITED STATES
/
VANCOUVER
,
June 2, 2020
/CNW/ -
Tectonic Metals Inc. (TECT: TSX-V)
("Tectonic" or the
"Company") is pleased to announce that the Company has launched a non-brokered private
placement financing of up to 15,000,000 units (the "
Units
") of securities at a price of
C$0.20
per
Unit for aggregate gross proceeds of up to
C$3,000,000
(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$0.40
and will expire two years from the closing date of the private placement.
Tony Reda
, President and CEO, said, "We are pleased to have the opportunity to bring in significant
new institutional investor support to the Tectonic registry on the heels of the strategic investment by
Doyon, Ltd. The net proceeds from this placement will enable Tectonic to conduct two robust drill
programs this year. We are ecstatic to advance our exploration program at Tibbs after our exciting
results from last year's drill program, which included 6.03 g/t Au over 28.95 metres on a newly
discovered structure approximately 35 km away from Northern Star's operating Pogo Mine. We are
also chomping at the bit to drill test our Seventymile Project, which hosts a 40 km long
underexplored greenstone belt that hasn't seen a drill hole in 20 years despite some very interesting
historical work."
The Financing
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 30 days from the date of
issuance of a news release by Tectonic announcing the accelerated exercise period.
Finder's fees may be payable on a portion of the Offering. Red Cloud Securities Inc. is acting as a
finder in connection with the Offering.
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.
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.,
Tony Reda
President and Chief Executive Officer of Tectonic Metals Inc.
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 LinkedIn, Facebook, Twitter and Instagram
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, the amount of funds to be raised in the
Offering, and the use of proceeds of the Offering. 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 . 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 access investors for the Offering, implement its business strategies; risks
associated with mineral exploration and production; risks associated with general economic
conditions; adverse industry events; adverse global events such as the COVID – 19 pandemic;
market volatility;ris ; volatility of commodity prices; inability to access sufficient capital on
acceptable 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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CNW 05:00e 02-JUN-20