VANCOUVER, BC / ACCESSWIRE / May 5, 2022 / Faraday Copper Corp. ("Faraday" or the "Company") (CSE:FDY) is pleased to announce that it has closed its previously announced and upsized private placement (the "PrivatePlacement") for gross proceeds of C$20 million.
Paul Harbidge, President and CEO, commented "I would like to thank all of our shareholders for their support and I am delighted with the continued endorsement from our key strategic investors, including the Lundin family, Murray Edwards, and Pierre Lassonde, who now collectively own approximately 24% of the issued and outstanding shares of Faraday."
Adam Lundin commented "We are pleased to support Faraday and the team as they advance their two US copper projects. Their focus on creating shareholder value through a disciplined technical approach is consistent with how we have, and continue to, operate our own businesses in the Lundin Group."
Pursuant to the Private Placement, Faraday issued 25,000,000 common shares of the Company at a price of $0.80 per share for gross proceeds of C$20 million. The Private Placement was not subject to finders' fees or commissions and the shares issued under the Private Placement have a hold period of four months and one day from the closing date of the Private Placement. The Company intends to use the net proceeds from the Private Placement to advance the Company's Copper Creek and Contact Copper projects as well as for general working capital purposes.
Paul Harbidge, Russell Ball, Zach Allwright, Katherine Arnold, Audra Walsh, Randy Engel and Rob Doyle, all insiders of the Company, subscribed for C$1,150,000 (1,437,500 common shares) under the Private Placement, which constitutes a "related party transaction" within the meaning of Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The issuance to the insiders of the Company is exempt from the valuation requirement of MI 61-101 by virtue of the exemption contained in section 5.5(b) as the Company's shares are not listed on a specified market and from the minority shareholder approval requirements of MI 61-101 by virtue of the exemption contained in section 5.7(a) of MI 61-101 in that the fair market value of the consideration of the shares issued to the related parties did not exceed 25% of the Company's market capitalization. The Company did not file a material change report 21 days before the closing of the Private Placement because the Company wanted to complete the private placement in a timely manner.
I believe they have kept a lid on the share price, while awaiting the closing of the Private Placement. Looking forward to more positive news and a much higher share price in the coming weeks and months ahead.
GLTA