Trigon Closes Private Placement Financing

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

(In Canadian Dollars unless otherwise stated)

TORONTO, Sept. 24, 2020 (GLOBE NEWSWIRE) -- Trigon Metals Inc. (TSX-V: TM) (the “Company” or “Trigon”) is pleased to announce the closing of its previously announced brokered private placement financing (the “Offering”) comprised of 13,721,042 units (the “Units”) at a purchase price of $0.35 per Unit for gross proceeds of $4,802,365. Concurrently with the Offering, the Company completed a non-brokered private placement of 117,957 Units for gross proceeds of $41,285. The Company expects to close a second tranche of the Offering on or before October 1, 2020.

Each Unit is comprised of one common share of Trigon (each a “Common Share”) and one-half of one Common Share purchase warrant (each whole warrant, a “Warrant”). Each Warrant entitles the holder to acquire one Common Share at a price of $0.45 for a period of 36 months following the closing date of the Offering.

The net proceeds of the Offering will be used to acquire additional silver-copper projects associated with the Silver Hill Project in Morocco, for exploration on the Silver Hill Project and general corporate purposes.

The Offering was led by Cormark Securities Inc. on behalf of a syndicate of agents that included M Partners Inc. (collectively, the “Agents”). As consideration for their services provided in connection with the Offering, the Company has (i) paid the Agents a cash commission equal to 6% of the gross proceeds of the Offering, other than in respect of certain purchases by persons on the “President’s List”, on which the cash commission was equal to 1.5%, and (ii) issued to the Agents and the selling group that number of broker warrants (the “Broker Warrants”) as is equal to 3% of the aggregate number of Units sold pursuant to the Offering (other than the portion thereof attributable to the “President’s List”, in respect of which no Broker Warrants were issued). Each Broker Warrant is exercisable to acquire one Common Share at a price of $0.45 per share for a period of 36 months following the date hereof.

All of the securities issued by the Company pursuant to the Offering will be subject to a four month statutory hold period which expires on January 25, 2021.

An insider of the Company subscribed for 1,715,000 Units under the Offering. Each transaction with an insider of the Company constitutes a “related party transaction” within the meaning of Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”). The Company is relying on exemptions from the formal valuation requirements of MI 61-101 pursuant to section 5.5(a) and the minority shareholder approval requirements of MI 61-101 pursuant to section 5.7(1)(a) in respect of such insider participation as the fair market value of the transaction, insofar as it involves interested parties, does not exceed 25% of the Company’s market capitalization.