RE:HaltNo Halt was needed! Tombill Mines closes $1.62M first tranche of financing
2021-12-31 11:42 ET - News Release
Mr. Adam Horne reports
TOMBILL MINES CLOSES FIRST TRANCHE OF PRIVATE PLACEMENT FOR GROSS PROCEEDS OF $1.625M
Tombill Mines Ltd. has closed the first tranche of a brokered private placement consisting of 10,125,000 units at a price of eight cents per HD unit and 9,055,533 flow-through units at a price of nine cents per FT unit, for total gross proceeds of approximately $1,625,000 in the first tranche. Prior to the end of January, 2022, the company anticipates closing an additional final tranche consisting of HD units.
The offering is being conducted pursuant to the terms and conditions of an agency agreement entered into between the company and Echelon Wealth Partners Inc.
Each HD unit consists of one common share of the company and one common share purchase warrant. Each warrant is exercisable to acquire one common share until Dec. 31, 2023, at an exercise price of 12 cents.
Each FT unit consists of one flow-through common share and one-half of one common share purchase warrant. Each whole FT warrant is exercisable to acquire one common share until Dec. 31, 2023, at an exercise price of 13 cents.
The net proceeds from the offering will be used to finance the company's exploration activities, and for general corporate purposes, provided that proceeds raised from the offering of the FT units will be used to incur Canadian exploration expenses that are flow-through mining expenditures (as defined in the Income Tax Act (Canada)) on the company's properties in Ontario.
In consideration for the services provided by the agent in connection with the offering, the company has agreed to: (i) pay to the agent a cash fee equal to 7 per cent of the aggregate gross proceeds of the offering, other than in respect of units sold to purchasers designated by the company, for which a cash fee shall be 3.5 per cent, and (ii) issue to the agent compensation warrants equal to 7 per cent of the aggregate number of units, other than in respect of units sold to purchasers designated by the company, for which compensation warrants shall equal 3.5 per cent. Each compensation warrant will be exercisable to acquire one HD unit at an exercise price of eight cents per such unit for a period of 24 months from the closing of the offering, subject to adjustment in certain events.
All securities issued in connection with the first tranche are subject to a statutory hold period of four months and one day from the closing date of the first tranche. The offering is subject to the final acceptance of the TSX Venture Exchange.
About Tombill Mines Ltd.
Tombill owns various royalty-free mineral exploration and past-producing gold properties in the Geraldton and Beardmore camp, Ontario. The company's business is mineral exploration, primarily gold. It has 74 claims: 60 are owned and patented, five leased and nine where it owns the mineral rights. Of these, the Tombill main group property comprises 58 claims: 54 owned patents and four owned mineral rights. The Tombill main group claims were originally staked in the first Geraldton gold rush in 1935 by Newmont in partnership with Tom Johnson and his brother Bill.
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