Tectonic Metals Closes Second Tranche of Non-Brokered Private Placement Financing; Announces Stock Option Grant
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TECTONIC METALS CLOSES SECOND TRANCHE OF NON-BROKERED PRIVATE
PLACEMENT FINANCING; ANNOUNCES STOCK OPTION GRANT
NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED
STATES
VANCOUVER, B.C., July 8, 2022 – Tectonic Metals Inc. (TSX-V: TECT; OTCQB: TETOF; FSE:
T15B) (the " Company" or " Tectonic") announces that the Company has closed the second
tranche of the non-brokered private placement financing previously announced on April 25,
2022, by issuing 7,183,339 units of the Company (the “Units”) at a price of C$0.06 per Unit, for
aggregate gross proceeds of C$431,000 (the “Offering”).
Tectonic’s President & CEO, Tony Reda, commented , “As we close our financing, I am
humbled by the trust our investors have placed in us despite the current challenging market
conditions. Their continued support is a recognition of the exciting opportunities we have at our
Alaskan properties and is a reflection of our own enthusiasm for the compelling targets we have
identified for the 2022 field season. Thanks to our investors and the hard work and dedication of
the Tectonic team, the drills are now turning at Seventymile. We look forward to reporting on our
progress at the earliest opportunity.”
The Offering
Each Unit is composed of one common share in the capital of Tectonic (a “Common Share”) and
one-half common share purchase warrant of the Company (each whole warrant, a “ Warrant”).
Each Warrant is exercisable into one Common Share at an exercise price of C$0.10 per Common
Share and expire two years from the closing date of the Offering.
The Warrants are subject to an acceleration clause whereby if the volume -weighted average
trading price of the Common Shares on the TSX Venture Exchange (the “ TSXV”) is C$0.20 or
greater for a period of twen ty (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.
The net proceeds of the Offering will be used to advance the Company’s projects and for general
working capital.
All securities issued under the Offering are subject to a four -month and one day hold period.
The Offering is subject to certain co nditions, including, but not limited to, the receipt of all
necessary approvals, including the final approval of the TSXV.
The Offering and issuance of the Units referenced in this press release involve related parties (as
such term is defined under Multi lateral Instrument 61 -101 – Protection of Minority Security
Holders in Special Transactions (“MI 61 -101”)) and therefore constitutes a related party
transaction under MI 61-101. This transaction is exempt from the formal valuation and minority
shareholder approval requirements of MI 61-101 pursuant to sections 5.5(b) and 5.7(1)(b) of MI
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61-101, as the Company is not listed or quoted on any of the stock exchanges or markets listed
in subsection 5.5(b) of MI 61 -101, and the fair market value of the securities to be distributed
and the consideration to be received for the securities under the Offering does not exceed 25%
of the Company's market capitalization.
In connection with the Offering and in accordance with the policies of the TSXV, the Company
paid Gerhard Merkel cash finders’ fees totalling C$24,900.02 and issued to the finder 415,000
non-transferable common share purchase warrants (each, a “Finder’s Warrant”). Each Finder’s
Warrant is exercisable into one Common Share at an exercise price of C$0.10 per Common
Share and expires July 8, 2024.
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 ame nded, 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.
Stock Option Grant
The Company announces that it has granted an aggregate of 3,050,000 incentive stock options
to directors, officers, and key consultants to purchase up to 3,050,000 common shares in the
capital of Tectonic. The incentive stock options have an exercise price of $0.10 per share, a 100%
premium to the previous day’s closing price.
To learn more about Tectonic, please click here.
On behalf of Tectonic Metals Inc.,
Tony Reda
President and Chief Executive Officer
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].
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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.