Tectonic Metals Announces Non-Brokered Private Placement Financing to Fund Upcoming Drill Programs
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
VANCOUVER, B.C. – Tectonic Metals Inc. (TECT: TSX-V) (“Tectonic” or the “Company”) is pleased to announce that the Company has launched a non-brokered private placement financing of up to 15,000,000 units (the “Units”) of securities at a price of C$0.20 per Unit for aggregate gross proceeds of up to C$3,000,000 (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$0.40 and will expire two years from the closing date of the private placement.
Tony Reda, President and CEO, said, “We are pleased to have the opportunity to bring in significant new institutional investor support to the Tectonic registry on the heels of the strategic investment by Doyon, Ltd. The net proceeds from this placement will enable Tectonic to conduct two robust drill programs this year. We are ecstatic to advance our exploration program at Tibbs after our exciting results from last year’s drill program, which included 6.03 g/t Au over 28.95 metres on a newly discovered structure approximately 35 km away from Northern Star’s operating Pogo Mine. We are also chomping at the bit to drill test our Seventymile Project, which hosts a 40 km long underexplored greenstone belt that hasn’t seen a drill hole in 20 years despite some very interesting historical work.”
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$0.56 or greater for a period of ten (10) 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.
Finder’s fees may be payable on a portion of the Offering. Red Cloud Securities Inc. is acting as a finder in connection with the Offering.
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.
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.
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.
This news release does not constitute an offer to sell, solicitation or offer to buy nor shall there be any sale of any of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful, including any of the securities in the United States of America. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “1933 Act”) or any state securities laws and may not be offered or sold within the United States or to, or for account or benefit of, U.S. Persons (as defined in Regulation S under the 1933 Act) unless registered under the 1933 Act and applicable state securities laws, or an exemption from such registration requirements is available.
On behalf of Tectonic Metals Inc.,
President and Chief Executive Officer of Tectonic Metals Inc.
For further information about Tectonic Metals Inc. or this news release, please visit Tectonic’s website at www.tectonicmetals.com or contact Tony Reda, President & CEO of Tectonic, at toll-free 1.888.858.9887 or by email at firstname.lastname@example.org
Cautionary Note Regarding Forward-Looking Statements
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, the amount of funds to be raised in the Offering, and the use of proceeds of the Offering. 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 . 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 access investors for the Offering, implement its business strategies; risks associated with mineral exploration and production; risks associated with general economic conditions; adverse industry events; adverse global events such as the COVID – 19 pandemic; market volatility;ris ; volatility of commodity prices; inability to access sufficient capital on acceptable 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 ’it’s 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.