Brixton Metals Announces Closing of $4.46M Private Placement and Adds Mr. Brock Riedell as Senior Technical Advisor to the Company
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VANCOUVER, British Columbia, Nov. 20, 2020 (GLOBE NEWSWIRE) -- Brixton Metals Corporation (the "Company") (TSXV: BBB) (OTCQB: BBBXF) is
pleased to announce that it has closed a non-brokered private placement of flow-through common shares of the Company for gross proceeds of C$4,461,120 (the "Private Placement").
Each flow-through share (a “FT Share”) was issued at a price of C$0.36 and is comprised of one common flow-through share of the Company. The Company issued a total of 12,392,002 FT
Shares pursuant to the Private Placement.
Chairman and CEO of Brixton Metals, Gary R. Thompson stated, “Brixton is now fully-funded going into 2021. Brixton will end 2020 with a treasury of about $9 million. This winter we are drilling for high-grade silver and cobalt at the Langis Project in Cobalt, ON and will be drilling further high-impact targets at the Thorn Project next season. We’re encouraged by the confidence we’ve seen from major shareholders, and are looking forward to positive near-term catalysts.”
The gross proceeds from the issuance of the FT Shares will be used for “Canadian exploration expenses” (within the meaning of the Income Tax Act (Canada)) (the “Qualifying Expenditures”), which will be renounced to the subscribers with an effective date no later than December 31, 2020 to the initial purchasers of the FT Shares in an aggregate amount not less than the gross proceeds raised from the issue of the FT Shares, as applicable, and, if the Qualifying Expenditures are reduced by the Canada Revenue Agency, the Company will indemnify each FT Shares subscriber for any additional taxes payable by such subscriber as a result of the Company’s failure to renounce the Qualifying Expenditures as agreed.
The net proceeds from the issuance of FT Shares shall be primarily used for exploration activities.
Finders acting in connection with the closing of this Private Placement received finder’s fees in the aggregate total amount of $137,420.84 and were issued an aggregate of 381,724 finder’s warrants. Each finder’s warrant is exercisable for one common share of the Company at an exercise price of $0.36 for a period of 24 months from the date of closing of the Private Placement.