News out this afternoon Keep the lights on money!
Monarch Mining closes $999,997 1st tranche of financing
2023-03-10 14:42 ET - News Release
Mr. Jean-Marc Lacoste reports
MONARCH ANNOUNCES THE CLOSING OF A FIRST TRANCHE OF $1 MILLION OF A $1.5 MILLION FLOW-THROUGH PRIVATE PLACEMENT
Monarch Mining Corp. has closed the first tranche of a non-brokered private placement for total gross proceeds of $999,997.15.
The Offering consisted of the issuance of 7,333,334 flow-through units of the Corporation (the "Quebec FT Units") at a price of C$0.075 per Quebec FT Unit, and 6,428,530 flow-through units of the Corporation (the "National
FT Units" and collectively with the Quebec FT Units, the "Units") at a price of C$0.07 per National FT Unit.
Each Quebec FT Unit consists of one common share of the Corporation and one-half of one common share purchase warrant (each whole purchase warrant a "Warrant"). Each common share comprised in each Quebec FT Unit will qualify as a "flow-through share" (within the meaning of subsection 66(15) of the Income Tax Act (Canada) and section 359.1 of the Taxation Act (Quebec)). Each National FT Unit consists of one common share of the Corporation and one-half of one Warrant. Each common share comprised in each National FT Unit will qualify as a "flow-through share" (within the meaning of subsection 66(15) of the Income Tax Act (Canada). Each Warrant entitles the holder thereof to purchase one common share of the Corporation (a "Warrant Share") at an exercise price of C$0.15 for a period of 24 months following the closing of the Offering.
The gross proceeds from the sale of the Units will be used by the Corporation to incur eligible "Canadian exploration expenses" that qualify as "flow-through mining expenditures" as both terms are defined in the Income Tax Act (Canada) (the "Qualifying Expenditures") related to the Corporation's eligible projects in Quebec. The Qualifying Expenditures will be renounced in favour of the subscribers with an effective date no later than December 31, 2023.
As consideration for the services provided by finders in connection with the first tranche of this Offering, the Corporation paid cash finders' fees totalling $69,999.79 and issued 483,333 compensation options (the "Compensation Warrants"). Each Compensation Warrant is exercisable to acquire one common share of the Corporation at a price of $0.10 per share over a period of 24 months following the closing of the Offering.
Closing of the Offering is expected to occur on or before April 6, 2023. All securities issued pursuant to the first tranche of this Offering are subject to a restricted hold period of four months and a day, ending on July 11, 2023, under applicable Canadian securities legislation. The Offering remains subject to the final approval of the Toronto Stock Exchange.
This press release shall not constitute an offer to sell or a 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. The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") and may not be offered or sold to, or for the account or benefit of, persons in the United States or U.S. persons absent registration or an applicable exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws. "United States" and "U.S. person" are as defined in Regulation S under the U.S. Securities Act.
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