Temas Resources Closes $5 Million Institutional Equity Capital
Temas Resources Closes $5 Million Institutional Equity Capital
Temas Resources and Crescita Capital Announce Closing of Major Institutional
Backing
VANCOUVER, British Columbia, November 30, 2020 ― Temas Resources Corp. (“The
Company”, “Temas Resources”, CSE: TMAS, OTCQB: TMASF), a publicly traded
company focused on the advancement of mineral independence within stable,
mining-friendly jurisdictions, announced today it has closed the previously announced
institutional funding of $5 million (the “Equity Investment Facility”) from Crescita
Capital.
“We are very pleased to be receiving this level of institutional backing so early in the
development of Temas Resources’ business plan,” said Michael Dehn, CEO. “With this
equity investment Temas Resources’ strategic vision and mission pursuit are being
verified by institutional investors.”
The Equity Investment Facility is for an aggregate amount of CAD$5 million and
Temas Resources will have three years to utilize the funding to expand and develop
its assets. In addition, Temas may use the Equity Investment Facility as security,
with the consent of Crescita Capital, to secure additional financing avenues.
“This Equity Investment Facility with Crescita Capital will provide Temas Resources
with the capital necessary to allow us to aggressively pursue the exploration and
development of Temas Resources properties,” Michael Dehn continued. "This
confirmation gives us great confidence in our ability to get the La Blache property
through the feasibility stage.”
Temas Resources can draw down funds from the $5 million Equity Investment Facility
from time to time during the three year term at Temas Resources’ discretion by
providing a notice to Crescita Capital (“Drawdown Notice”), and in return for each
Drawdown Notice funded by Crescita Capital, Temas Resources will allot and issue
fully paid shares to Crescita Capital (each, a “Private Placement”). The shares issued
in connection with any Private Placement will be priced at the higher of (i) the floor
price set by Temas Resources and (ii) 90% of the average closing bid price resulting
from the following ten days of trading after the Drawdown Notice (“Pricing Period”).
The Drawdown Notice amount requested by Temas Resources cannot exceed 700%
of the average daily trading volume of the Pricing Period.
The Company paid a 3% commission in shares and issued warrants equal to 8% of
the outstanding shares of Temas Resources (together, the “Commitment Fee”), in
both cases at the price and on the terms previously announced in our news release
dated July 7, 2020.
About Crescita Capital LLC
Crescita Capital is an investment and consultancy group that provides financing and
corporate development services for growth-stage companies in markets around the
world (https://www.crescitacapital.com).
About Temas Resources
Temas Resources Corp. (" Temas Resources") (CSE: TMAS) (OTCQB: TMASF) is
responding to the growing global demand for iron ore and two strategically important
minerals — titanium and vanadium — deemed by the U.S. Department of the Interior
as critical to U.S. national security and the economy. Temas Resources’ properties
are located in the stable, mi ning-friendly jurisdiction of Quebec (Canada) bordering
Vermont, Maine, and New York State (U.S.) in an area known as the Grenville
Geological Province. The Grenville Geological Province is home to Lac Tio, the largest
solid ilmenite deposit in the world. As a mineral exploration company focused on the
acquisition, exploration and development of iron, titanium, and vanadium properties,
Temas Resources has focused its efforts on advancing two major projects in the
Grenville Geological Province area. The Comp any’s first project, the DAB Property,
consists of an option for 100% interest on 128 contiguous mineral claims which cover
6,813 hectares (68.14 km²) within the Grenville Geological Province. At the
Company’s flagship La Blache Property, the Company has 100% ownership of 48
semi-contiguous mineral claims which cover 2,653 hectares (26.53 km²) within the
Grenville Geological Province. All public filings for the Company can be found on the
SEDAR website www.sedar.com. For more information about the Company, please
visit www.temasresources.com.
On behalf of the Board of Directors of Temas Resources Corp.,
“Kyler Hardy”
Director
Contact: Nick Spencer, Investor Relations
Phone: +1 (604) 332-0902
Email: [email protected]
Forward Looking Statements
This news release includes certain “Forward ‐Looking Statements” within the meaning of the
United States Private Securities Litigation Reform Act of 1995 and “forward‐looking
information” under applicable Canadian securities laws. When used in this news release, the
words “anticipate”, “believe”, “estimate”, “expect”, “target”, “plan”, “forecast”, “may”,
“would”, “could”, “schedule” and similar words or expressions, identify forward ‐looking
statements or information. These forward‐looking statements or information relate to, among
other things: entry into a definitive agreement for the Equity Investment Facility, closing of
the Equity Investment Facility, the Company’s plan to build an advanced base and special
metals portfolio, the development of the La Blache Pr operty and the DAB Property, including
drilling activities; and future mineral exploration, development and production, the funding of
the Company pursuant to the Equity Investment Facility, the issuance of securities pursuant
to the Equity Investment Faci lity, and the resale restrictions and arrangements relating to
such securities.
Forward‐looking statements and forward ‐looking information relating to any future mineral
production, liquidity, enhanced value and capital markets profile of Temas Resources, future
growth potential for Temas Resources and its business, and future exploration plans are based
on management’s reasonable assumptions, estimates, expectations, analyses and opinions,
which are based on management’s experience and perception of trends , current conditions
and expected developments, and other factors that management believes are relevant and
reasonable in the circumstances, but which may prove to be incorrect. Assumptions have
been made regarding, among other things, the price of iron, t itanium, vanadium and other
metals; no escalation in the severity of the COVID -19 pandemic; costs of exploration and
development; the estimated costs of development of exploration projects; Temas Resources’
ability to operate in a safe and effective manner and its ability to obtain financing on
reasonable terms.
These statements reflect Temas Resources’ respective current views with respect to future
events and are necessarily based upon a number of other assumptions and estimates that,
while considered reasonable by management, are inherently subject to significant business,
economic, competitive, political and social uncertainties and contingencies. Many factors, both
known and unknown, could cause actual results, performance or achievements to be
materially different from the results, performance or achievements that are or may be
expressed or implied by such forward‐looking statements or forward-looking information and
Temas Resources has made assumptions and estimates based on or related to many of these
factors. Such factors include, without limitation: the Company’s dependence on one mineral
project; precious metals price volatility; risks associated with the conduct of the Company’s
mining activities in Quebec; regulatory, consent or permitting delays; risks relating to reliance
on the Company’s management team and outside contractors; risks regarding mineral
resources and reserves; the Company’s inability to obtain insurance to cover all risks, on a
commercially reasonable basis or at all; currency fluctuations; risks regarding the failure to
generate sufficient cash flow from operations; risks relating to project financing and equity
issuances; risks and unknowns inherent in all mining projects, including the inaccuracy of
reserves and resources, me tallurgical recoveries and capital and operating costs of such
projects; contests over title to properties, particularly title to undeveloped properties; laws
and regulations governing the environment, health and safety; the ability of the communities
in which the Company operates to manage and cope with the implications of COVID -19; the
economic and financial implications of COVID -19 to the Company; operating or technical
difficulties in connection with mining or development activities; employee relations, labour
unrest or unavailability; the Company’s interactions with surrounding communities and
artisanal miners; the Company’s ability to successfully integrate acquired assets; the
speculative nature of exploration and development, including the risks of d iminishing
quantities or grades of reserves; stock market volatility; conflicts of interest among certain
directors and officers; lack of liquidity for shareholders of the Company; litigation risk; and
the factors identified under the caption “Risk Factors ” in Temas Resources’ management
discussion and analysis. Readers are cautioned against attributing undue certainty to forward‐
looking statements or forward-looking information. Although Temas Resources has attempted
to identify important factors that could cause actual results to differ materially, there may be
other factors that cause results not to be anticipated, estimated or intended. Temas Resources
does not intend, and does not assume any obligation, to update these forward ‐looking
statements or forw ard-looking information to reflect changes in assumptions or changes in
circumstances or any other events affecting such statements or information, other than as
required by applicable law.