News

Tectonic Announces Strategic Investment by Crescat Capital as Part of a C$3.5 Million Non-brokered Private Placement

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VANCOUVER, B.C., May 10, 2021 Tectonic Metals Inc. (TSX-V: TECT; OTCQB: TETOF; FSE: T15B) ("Tectonic" or the “Company”) is excited to announce Crescat Capital LLC (“Crescat”) as a new strategic investor in the Company as part of a C$3,500,000 non-brokered private placement of units issued by Tectonic.

Tony Reda, President & CEO of Tectonic stated, “We are honored and extremely pleased to welcome Crescat Capital as a strategic shareholder in Tectonic.  Our focus has always been on acquiring high-quality shareholders and Crescat’s reputation for investment and technical expertise is a compelling endorsement of Tectonic.  Advised by renowned geologist Dr. Quinton Hennigh, Crescat’s investment demonstrates its confidence in our team’s ability to execute on our plans - even more so this year as Tectonic’s exploration work has significantly advanced the drill targets at both Tibbs and Seventymile, and our understanding of the targets is now in the best position it has been since we acquired them.”

Kevin C. Smith, CFA, Member and Chief Investment Officer of Crescat commented, “We love the high-grade gold targets that Tectonic will aggressively pursue this season. Soil anomalies and previous drill results indicate potential mineralized systems on these properties with characteristics akin to both Pogo and Ft. Knox, the two big producing mines in Alaska. Historic drilling at Tibbs produced high-grade gold intercepts which remain open, and which have not been followed up on since 2013. Why? Because the gold market and exploration budgets were tanking back then. Based on our macro work, we believe the precious metals market is poised for an upward inflection today. There is no better time than the present to build on Tectonic’s work in this prolific region.”

Dr. Quinton Hennigh, Technical Advisor to Crescat, stated, “Tectonic’s Tibbs gold project appears to host a very strong intrusion-related lode gold system displaying a close temporal and spatial association with intrusive activity and favorable high and low-angle structural architecture. These same ingredients come together to make the nearby world class Pogo gold deposit. Given that there are multiple historic drill holes at Tibbs yielding +100 gram-meter intercepts, this may be an incipient discovery that has simply fallen through the cracks, but that could prove a very exciting story in the current bull gold cycle. We are delighted to see Tectonic pursue aggressive plans to drill at Tibbs this coming season.” 

The Offering

The Company is conducting a non-brokered private placing of up to 35,000,000 Units (the “Units”) at a price of C$0.10 per unit for aggregate gross proceeds of up to C$3,500,000 (the "Offering"). Each unit is comprised of one common share of Tectonic and one-half common share purchase warrant (each whole warrant, a “Warrant”).  Each whole Warrant will be exercisable for a common share at an exercise price of C$0.17 and will expire two years from the closing date of the private placement.

The Warrants are subject to an acceleration clause whereby if the volume-weighted average trading price of Tectonic’s common shares on the TSX Venture Exchange (the “TSXV”) is C$0.30 or greater for a period of twenty (20) consecutive trading days (whether or not trading occurs on all such days), Tectonic has the right to accelerate the expiry date of the Warrants to 30 days from the date of issuance of a news release by Tectonic announcing the accelerated exercise period.

On closing of the Offering, Crescat will be granted a pre-emptive right to maintain its pro-rata interest pursuant to the terms of an investment agreement with the Company for as long as Crescat owns more than 5% of the common shares of Tectonic (calculated on a partially diluted basis).

The net proceeds of the Offering will be used to advance the Company’s Tibbs and Seventymile properties and for general working capital.  Closing is subject to the conditional acceptance of the TSXV.  All securities issuable under the Offering will be subject to a four-month hold period from the date of closing.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. This news release shall not constitute an offer to sell or the solicitation of an offer to buy any securities in the United States. The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, or under any state securities laws in the United States, and such securities may not be offered or sold within the United States absent registration under U.S. federal and state securities laws or an applicable exemption from such U.S. registration requirements.

About Crescat

Crescat is a global macro asset management firm headquartered in Denver, Colorado, which deploys tactical investment themes based on proprietary value-driven equity and macro models. Crescat's investment goals are to provide industry leading absolute and risk-adjusted returns over complete business cycles with low correlation to common benchmarks and they apply their investment process across a mix of asset classes and strategies. Crescat is taking activist stakes in the precious metals exploration industry today as one of its key macro themes.

About Tectonic

Tectonic Metals Inc. is a mineral exploration company created and operated by an experienced and well-respected technical and financial team with a track record of wealth creation for shareholders.  Key members of the Tectonic team were involved with Kaminak Gold Corporation, the company that raised C$165 million to fund the acquisition, discovery and advancement of the Coffee Gold Project in the Yukon Territory through to the completion of a bankable feasibility study before selling the multi-million-ounce gold project to Goldcorp Inc. (now Newmont Goldcorp) for C$520 million in 2016.

Tectonic is focused on the acquisition, exploration, discovery and development of mineral resources from district-scale projects in politically stable jurisdictions that have the potential to host world-class orebodies.

Tectonic believes that responsible mineral exploration and development can positively impact the communities in which the company lives and operates and is committed to early and ongoing community engagement, best practices in environmental stewardship and the development of a strong safety culture. Whether at home or at work, the Tectonic team is grounded on the following core values:  passion, integrity, patience, focus, perseverance, honesty, fairness, accountability, respect and a play big mindset.  The company works for its shareholders and is committed to creating value for them. 

On behalf of Tectonic Metals Inc.,

Tony Reda
President and Chief Executive Officer

For further information about Tectonic Metals Inc. or this news release, please visit our website at www.tectonicmetals.com or contact Bill Stormont, Investor Relations, at toll-free 1.888.685.8558 or by email at info@tectonicmetals.com.

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Cautionary Note Regarding Forward-Looking Statements and Historical Information

Certain information in this news release constitutes forward-looking information and statements under applicable securities law. Any statements that are contained in this news release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements are often identified by terms such as “may”, “should”, “anticipate”, “expect”, “intend” and similar expressions and include, but are not limited to, statements with respect to the potential for mineralization at Tectonic’s projects, any future exploration activities and the size and timing of the completion of the Private Placement.  The Company makes no representation or warranty regarding the accuracy or completeness of any historical data from prior exploration undertaken by others other than the company and has not taken any steps to verify, the adequacy, accuracy or completeness of the information provided herein and, under no circumstances, will be liable for any inaccuracies or omissions in any such information or data, any delays or errors in the transmission thereof, or any loss or direct, indirect, incidental, special or consequential damages caused by reliance on this information or the risks arising from the stock market. 

Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management at the date the statements are made including, among others, assumptions about future prices of gold and other metal prices, currency exchange rates and interest rates, favourable operating conditions, political stability, obtaining governmental  and other approvals and financing on time, obtaining required licenses and permits, labour stability, stability in market conditions, availability of equipment, accuracy of any mineral resources, successful resolution of disputes and anticipated costs and expenditures. Many assumptions are based on factors and events that are not within the control of Tectonic, and there is no assurance they will prove to be correct.

Although Tectonic considers these beliefs and assumptions to be reasonable based on information currently available to it, they may prove to be incorrect, and the forward-looking statements in this release are subject to numerous risks, uncertainties and other factors that may cause future results to differ materially from those expressed or implied in such forward-looking statements. Forward-looking statements necessarily involve known and unknown risks, including, without limitation: the Company’s ability to implement its business strategies; risks associated with mineral exploration and production; risks associated with general economic conditions; adverse industry events; marketing and transportation costs; loss of markets; volatility of commodity prices; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; industry and government regulation; changes in legislation, income tax and regulatory matters; competition; currency and interest rate fluctuations; and other risks. 

Readers are further cautioned not to place undue reliance on forward-looking statements as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. Although Tectonic has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. Tectonic does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

[Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.]