VANCOUVER, Oct. 1, 2015 /CNW/ - Yellowhead Mining Inc. ("Yellowhead" or the "Company") (TSX: YMI) announces the completion of its rights offering, which was previously announced onAugust 21, 2015 and expired on September 29, 2015, together with the deferral of expenditures on the Harper Creek Project.
Rights Offering
The Company issued a total of 24,751,431 common shares under the rights offering at a price of $0.045 per share for gross proceeds of$1,113,814. A total of 14,035,706 common shares were issued under the basic subscription privilege and a total of 10,715,725 common shares were issued under the additional subscription privilege, resulting in the total number of issued and outstanding common shares of the Company currently being 123,757,157 common shares.
Use of Proceeds
The net proceeds of the rights offering will be used for general corporate and working capital purposes and to repay the bridge loan from Matco Capital Ltd. ("Matco"). The net proceeds are not sufficient for the Company to complete the environmental assessment (the "assessment") for the Harper Creek Project.
The Board of Directors has concluded that, in light of current conditions in the commodity markets and the international capital markets, it is in the best interest of all shareholders to defer any additional expenditures on the Harper Creek Project until such time as more favorable commodity and capital markets present themselves.
About the Harper Creek Project
Harper Creek is a proposed 70,000 tonnes-per-day open pit copper mine with a 28 year mine life, located in the Thompson – Nicola region of British Columbia near Vavenby. Harper Creek has a four year development period, with the initial two years focused on environmental and construction permitting, and the second two years dedicated to construction. When developed, Harper Creek will provide up to 600 jobs during construction and up to 450 permanent jobs during operations.
About Yellowhead Mining Inc.
Yellowhead Mining Inc. is a development stage company with a 100% interest in the Harper Creek Project, located in the North Thompson - Nicola region of British Columbia, Canada. The proposed Harper Creekmine will be a large scale, long life, low cost open pit copper mine, has a NI 43-101 compliant feasibility study, and is currently in the environmental permitting phase of development.