Serengeti Announces Oversubscription and Closing of its Non-Brokered Hard Dollar Private Placement, Receipt of $1.08 Million METC Refund and Attendance at VRIC Conference

VANCOUVER, British Columbia, Jan. 16, 2020 (GLOBE NEWSWIRE) -- Serengeti Resources Inc. (SIR: TSX-V).  Further to the Company’s news release of December 18, 2019 wherein it was announced that the Company had arranged a non-brokered private placement to raise gross proceeds of up to CDN $500,000 (the “Financing”), the Company reports that due to overwhelming interest, it increased the offering to $695,443.  The Financing has now closed and the Company has issued a total of 3,863,572 units at a price of $0.18 per unit.

Each unit consists of one common share and one half of one share purchase warrant (a “Warrant”).  Each whole Warrant entitles the holder to purchase one additional common share of the Company at a price of $0.26 for a period of two years following closing of the Financing. 

Finders’ fees totaling $6,004 in cash and 33,360 share purchase warrants (“Finder Warrants”) were paid in respect of certain subscriptions incidental to the financing in accordance with the policies of the TSX Venture Exchange.  The Finder Warrants are exercisable at a price of $0.26 for a period of two years from the date of issuance.

The securities issued by the Company in the Financing are subject to a statutory hold period which expires on May 17, 2020.  Proceeds raised in the Financing will be used for ongoing general corporate and administrative expenses as well as for non-flow through eligible project expenses.

Serengeti also announces the receipt of a $1.08 million Mineral Exploration Tax Credit (“METC”) refund which was due to Kwanika Copper Corp. (“KCC”), regarding expenditures made on KCC’s Kwanika Property in 2018.  KCC is contractually obliged to turn over any METC recovered on the initial $7 million of expenditures on the Kwanika Property to Serengeti, which includes the current refund which has been transferred to Serengeti’s account. 

As announced September 4, 2019, the Company had arranged a Convertible Loan financing with various private investors (“Lenders”) for an aggregate loan amount of $700,000 and security for the Loan was the METC refund.  Lenders had the right to convert all or any portion of their principal amount into common shares of the Company at a price of $0.32 per share, by delivering a completed conversion notice to the Company, however none of the Lenders elected conversion.  The Company will arrange for repayment of the Convertible Loans, plus interest and an early repayment fee of 6 months interest on the principal amounts advanced, less any interest payments made prior to the date of repayment.