Vancouver, B.C., Metallic Minerals Corp. (TSX-V: MMG; US OTC: MMNGF) (“Metallic” or the “Company”) is pleased to announce that it has raised aggregate proceeds of $550,000 through the issuance of 1.375 million common shares (the “Private Placement”) on a flow-through basis (“Flow-Through Shares”) at a price of $0.40 per Flow-Through Share, which represents a greater than 20% premium to the closing price on the TSX-V on June 23, 2017.
Proceeds from the sale of the Flow-Through Shares will be used to incur eligible Canadian Exploration Expenses at Metallic‘s flagship Keno Silver Project located in the Keno Hill Mining District in central Yukon Territory, Canada.
Greg Johnson, CEO and Chairman, noted, "We are pleased to have closed this flow-through private placement which enhances the available funds for drilling on our Keno Silver Project and will enable us to expand these efforts both in terms of metres and locations. The Company launched its 2017 exploration season in late May with the first phase of work focused on targeted geophysical and geochemical surveys, stratigraphic mapping, and trenching to further refine the identified priority targets. Phase 1 drilling is expected to commence upon completion of this initial exploration work and will focus on testing down-dip and along-strike extensions of previously identified mineralization along the known mineralized trends, including at some of the historic producing mines on the property. We anticipate additional news over the coming weeks and months as results are received from our exploration activities and as we continue to assess opportunities to create long-term value for our shareholders.”
The Flow-Through Shares are subject to a hold period of four months and one day from their date of issuance under applicable Canadian securities laws, expiring October 23, 2017.
Metallic has agreed to pay a finder’s fee of 6% of the gross proceeds and will issue finder’s warrants equal to 6% of the Flow-Through Shares sold. Each finder’s warrant will entitle the holder to purchase one common share of the Company at a price of $0.50 for a period of two years from closing. If, any time after the closing date, the closing price for the common shares on the TSX Venture Exchange trades above $0.75 for 10 consecutive trading days, the Company may provide written notice of acceleration of the expiry date of the finder’s warrants. The expiry date for the finder’s warrants will thereafter be accelerated to the date a minimum of 30 days after the date of delivery of such notice, or such greater period as the Company may determine.
The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press 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 State in which such offer, solicitation or sale would be unlawful.
About Metallic Minerals Corp.
Metallic Minerals Corp. is a growth stage exploration company focused on the acquisition and development of high-grade silver and gold in the Yukon within underexplored districts proven to produce top-tier assets. Our objective is to create value through a disciplined, systematic approach to exploration, reducing investment risk and maximizing probability of long-term success. Our core Keno Silver Project is located in the historic Keno Hill silver district of Canada's Yukon Territory, a region which has produced over 200 million ounces of silver and currently hosts one of the world’s highest-grade silver resources. Metallic Minerals is led by a team with a track record of discovery and exploration success, including large scale development, permitting and project financing.
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Forward Looking Statements: This news release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts including, without limitation, statements regarding potential mineralization, historic production, estimation of mineral resources, the realization of mineral resource estimates, interpretation of prior exploration and potential exploration results, the timing and success of exploration activities generally, the timing and results of future resource estimates, permitting time lines, metal prices and currency exchange rates, availability of capital, government regulation of exploration operations, environmental risks, reclamation, title, and future plans and objectives of the company are forward-looking statements that involve various risks and uncertainties. Although Metallic Minerals believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Forward-looking statements are based on a number of material factors and assumptions. Factors that could cause actual results to differ materially from those in forward-looking statements include failure to obtain necessary approvals, unsuccessful exploration results, changes in project parameters as plans continue to be refined, results of future resource estimates, future metal prices, availability of capital and financing on acceptable terms, general economic, market or business conditions, risks associated with regulatory changes, defects in title, availability of personnel, materials and equipment on a timely basis, accidents or equipment breakdowns, uninsured risks, delays in receiving government approvals, unanticipated environmental impacts on operations and costs to remedy same, and other exploration or other risks detailed herein and from time to time in the filings made by the companies with securities regulators. Readers are cautioned that mineral resources that are not mineral reserves do not have demonstrated economic viability. Mineral exploration and development of mines is an inherently risky business. Accordingly, the actual events may differ materially from those projected in the forward-looking statements. For more information on Metallic Minerals and the risks and challenges of their businesses, investors should review their annual filings that are available at www.sedar.com.
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