Tectonic Metals Closes Second Tranche; $7.67 Million Raised in Oversubscribed Offering

VANCOUVER, BC / ACCESSWIRE / August 10, 2023 / Tectonic Metals Inc. (TSXV:TECT)(OTCQB:TETOF)(FSE:T15B) ("Tectonic" or the "Company"), a junior explorer that applies a disciplined and up-front approach to addressing the economics, community benefits, and sustainability of its projects, today announced the closing of the Company's second tranche (the "Second Tranche") of a brokered private placement (the "Offering") for gross proceeds of approximately $4.32 million . Aggregate gross proceeds from both the first tranche and Second Tranche of the Offering are approximately $7.67 million. Unless otherwise noted, all amounts are expressed in Canadian dollars.

The $4,323,096 raised in the Second Tranche consisted of the issuance of 39,300,873 units (each a "Unit") of the Company including 19,862,085 LIFE Units (defined below), and 19,438,788 Hold Units (defined below). Each of the LIFE Units and Hold Units had a price of $0.11 per unit. The brokered portion of the Offering was completed pursuant to an agency agreement (the "Agency Agreement") with Canaccord Genuity Corp. (the "Lead Agent"), alongside 3L Capital Inc. ("3L Capital", and collectively with the Lead Agent, the "Agents").

The Offering

Each Unit (including both LIFE Units and Hold Units, as defined below) is comprised of one common share in the capital of the Company (a "Common Share") and one-half of one Common Share purchase warrant (each whole Common Share purchase warrant, a "Warrant"). Each Warrant entitles the holder thereof to purchase one Common Share (a "Warrant Share") for a period of 24 months following the closing date of the Offering at an exercise price of $0.15.

The Units issued under the Second Tranche of the Offering were offered to purchasers pursuant to: (i) the listed issuer financing exemption under Part 5A of NI 45-106 for gross proceeds of $2,184,829 (the "LIFE Units"), in all the provinces of Canada, except Québec, and (ii) the accredited investor exemption under NI 45-106 for gross proceeds of $2,138,267 (the "Hold Units"). The LIFE Units are not subject to resale restrictions pursuant to applicable Canadian securities laws, subject to the rules of the TSX Venture Exchange (the "TSXV"). The Hold Units are subject to a statutory hold period of four months in accordance with applicable Canadian securities laws. Securities issued to US investors under the Offering are subject to a six-month hold period. Purchasers under the Offering received a fixed ratio of LIFE Units to Hold Units, being 5:1. Each subscriber purchased one Hold Unit for every 5 LIFE Units purchased.