Harfang Announces Closing of Private Placement

MONTREAL, Dec. 22, 2023 (GLOBE NEWSWIRE) -- (TSX-V: HAR) (“Harfang” or the “Company”) is pleased to announce that it has completed a non-brokered private placement for gross proceeds of $940,500 (the “Private Placement”).

Pursuant to the Private Placement, Harfang issued an aggregate of (a) 2,733,333 flow-through common shares as a part of a charity arrangement (the “Charity FT Shares”) at $0.30 per Charity FT Share and (b) 573,811 flow-through common shares (the “FT Shares”) at $0.21 per FT Share.

“We are excited to welcome a new institutional shareholder to Harfang and would like to thank the continued support of our existing shareholders participating in this placement,” said Rick Breger, President. “With this additional liquidity, we further reinforce our optionality and financial flexibility. We, at Harfang, are all looking forward to an exciting 2024 and wish all our stakeholders and happy and safe Holiday Season.”   

The proceeds from the Private Placement will be used for exploration expenditures on the Company’s projects located in the Province of Québec. More particularly, the proceeds will be used for “Canadian exploration expenses” within the meaning of the Income Tax Act (Canada), and be incurred on or before December 31, 2024 and renounced to the subscribers with an effective date no later than December 31, 2023. In addition, the proceeds arising from the issuance of the Charity FT Shares will, once renounced, qualify as “flow-through critical mineral mining expenditures” within the meaning of the Income Tax Act (Canada). Finally, the proceeds will qualify under the Taxation Act (Québec) as (a) an expense for inclusion in the “exploration base relating to certain Québec exploration expenses” within the meaning of the Taxation Act (Québec) and (b) an expense for inclusion in the “exploration base relating to certain Québec surface mining expenses” within the meaning of the Taxation Act (Québec).

An insider of the Company has participated in the Private Placement for an amount of $10,500 under the same terms and conditions as the other investors. The participation of this insider is exempt from the formal valuation and shareholder approval requirements under Regulation 61-101 respecting Protection of Minority Holders in Special Transactions. The exemption is based on the fact that the market value of such participation or the consideration paid by such insider does not exceed 25% of the market capitalization of the Company.