Doré Copper Announces Closing of C$11 Million Private Placement of Flow-Through Shares, Including Full Exercise of Agents' Option
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TORONTO, Feb. 18, 2021 (GLOBE NEWSWIRE) -- Doré Copper Mining Corp. (the "Corporation" or "Doré Copper") (TSXV: DCMC; OTCQB: DRCMF; FRA: DCM) is pleased to announce that it has closed its previously announced "best efforts" private placement (the "Offering"), pursuant to which the Corporation sold an aggregate of 12,221,000 common shares of the Corporation that will qualify as "flow-through shares" within the meaning of subsection 66(15) of the Income Tax Act (Canada) (the "Flow-Through Shares") at a price of C$0.90 per Flow-Through Share for aggregate gross proceeds of C$10,998,900, including the full exercise of the agents' option. With the closing of this Offering, the Corporation now has 53,158,668 common shares outstanding.
Ernest Mast, President and CEO, stated: “With this funding, Doré Copper's cash balance totals approximately C$16 million, providing ample funds for the Corporation to continue exploration and advance its key high-grade copper-gold projects in Chibougamau, Québec to a PEA (Preliminary Economic Assessment) later this year that envisions a hub-and-spoke operation feeding a centralized mill. We are also pleased to announce that several established mining entrepreneurs were involved in the Offering, resulting in a meaningful share position in the Corporation. These investors have indicated that they share the Corporation's vision of building a new and significant Canadian-based copper-gold mining company and will help in providing strategic advice to the Corporation in achieving that vision.”
Cormark Securities Inc. and Paradigm Capital Inc. acted as agents (the "Agents") in connection with the Offering pursuant to the terms of an agency agreement dated February 18, 2021. In consideration for their services in connection with the Offering, the Corporation paid the Agents a cash commission equal to $659,934 representing 6% of the aggregate gross proceeds from the sale of Flow-Through Shares.
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The Corporation will use an amount equal to the gross proceeds received by the Corporation from the sale of the Flow-Through Shares, pursuant to the provisions in the Income Tax Act (Canada), to incur eligible "Canadian exploration expenses" that qualify as "flow-through mining expenditures" as both terms are defined in the Income Tax Act (Canada) (the "Qualifying Expenditures") on or before December 31, 2022, and will renounce all of the Qualifying Expenditures in favour of the purchasers of the Flow-Through Shares effective December 31, 2021. The Corporation will shortly announce its drilling plans for the next two quarters based on the funds available from the recent financings.