Olivut Announces Closing of Private Placement of Common Shares
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TORONTO, Dec. 22, 2020 (GLOBE NEWSWIRE) -- Olivut Resources Ltd. (“Olivut” or the “Company”) (TSXV:OLV) is pleased to announce that the Company has closed a non-brokered private placement (the “Private Placement”) comprised of 5,000,000 common shares (the “Common Shares”) for proceeds of $400,000 at a price of $0.08 per Common Share. The Common Shares are subject to resale restrictions pursuant to applicable securities laws requirements and will not be freely tradable until four months after the date of issue.
One insider participated in the Private Placement, thereby making the Private Placement a “related party transaction” as defined under Multilateral Instrument 61-101 (“MI 61-101”). Mr. Pierre Lassonde, as insider of the Company, purchased 1,250,000 Common Shares and owns or controls 8,097,000 common shares or approximately 12.9% of the total common shares issued and outstanding after the completion of the Private Placement. The Private Placement was unanimously approved by the directors of the Company. The Company is relying on Section 5.5(a) of MI 61-101 for an exemption from the formal valuation requirement and Section 5.7(1)(a) of MI 61-101 for an exemption from the minority shareholder approval requirement of MI 61-101 because the fair market value of the issuance to Mr. Lassonde is less than 25% of the market capitalization of the Company.
Olivut will use the proceeds of the Private Placement for exploration and general corporate purposes.
The TSX Venture Exchange approved for listing the Common Shares issued under the Private Placement on December 22, 2020.
Olivut is a diamond exploration company with a 100% mineral interest in the HOAM Project (the “HOAM Project”) and a 50% interest in the Seahorse Project (the Seahorse project”), both projects being located in Canada’s Northwest Territories.
Numerous targets are drill ready on the HOAM Project and a detailed helimag program is proposed for additional regional geophysical anomalies. It is anticipated that many additional new targets will be added to the current list of priority drill targets. Completion of this work program is contingent on the raising of funds and the effects of the current Coronavirus pandemic particularly on planning and work in the Northwest Territories.