Viscount Mining Announces Closing of Over Subscribed Non - Brokered Private Placement

VANCOUVER, British Columbia, July 29, 2020 (GLOBE NEWSWIRE) -- Viscount Mining Corp. (TSX-V: VML) (OTCQB: VLMGF) ("Viscount Mining") is pleased to announce it has closed its non-brokered private placement (the “Private Placement”) with the assistance of IBK Capital Corp announced by news release dated July 23, 2020. The private placement was originally announced for total gross proceeds of up to $4,000,000 however Viscount filed a price reservation form to increase the size of the Private Placement to total gross proceeds of $5,000,000 with and as sought approval for an over-allotment of 15% for a total of $5,750,000.

The closing comprises 23,958,332 units of the Company (each a “Unit”) at a price of $0.24 per Unit. Each Unit consists of one common share of the Company (a “Share”) and one transferrable Share purchase warrant (a “Warrant”). Each Warrant will entitle the holder thereof to acquire one additional Share at a price of $0.32 for term of 2 years following closing, being July 29, 2022 (the “Expiry Date”).
Net proceeds from the Offering, are expected to be used for the exploration and development of the Viscount Mining mineral property interests and ongoing working capital requirements.

In connection with the closing the Company will pay cash commissions of $343,610 and issue 1,426,964 finder’s warrants pursuant to and in accordance with applicable securities laws and Exchange policy. The finder’s warrants have the same terms as the Warrants.

The transaction constituted a related party transaction within the meaning of Multilateral Instrument 61-101 (“MI 61-101”) as a policy of the TSX Venture Exchange, there were directors and insiders of the Company that participated and together subscribed for an aggregate of 1,096,958 Units pursuant to the Offering. The Company is relying on the exemptions from the valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(b) and 5.7(1)(a) of MI 61-101, as the fair market value of the participation in the Offering by the insider does not exceed 25% of the market capitalization of the Company, as determined in accordance with MI 61-101.

The Offering is subject to TSX Venture Exchange approval. There will be a hold period of four months and one day on all securities issued under this financing.

Viscount is in the final planning stages of preparing for a drill program beginning in August at Silver Cliff, Colorado, where we have an open pit resource which we expect to expand.