Closed the Private Placement
Azincourt Energy closes second tranche of financing
2023-12-29 17:40 ET - News Release
Mr. Alex Klenman reports
AZINCOURT ENERGY CORP. CLOSES SECOND TRANCHE OF PRIVATE PLACEMENT
Azincourt Energy Corp. has closed a second tranche of its non-brokered private placement. In connection with closing of the second tranche, the Company has issued 500,000 non-flow-through units (each, an "NFT Unit") and 5,714,286 flow-through units (each, an "FT Unit"). Each NFT Unit was offered at a price of $0.03 and each FT Unit was offered at a price of $0.035. Each NFT Unit and FT Unit consists of one common share and one share purchase warrant entitling the holder to acquire an additional common share of the Company at a price of $0.05 until December 29, 2026.
When combined with the earlier tranche of the placement, the Company has raised gross proceeds of $1,255,117.26 through the issuance of 1,170,000 NFT Units and 34,857,635 FT Units.
The gross proceeds of the Offering will be applied to the drilling, exploration and development of the Company's East Preston Property, located in the Athabasca region of Saskatchewan, Canada and the Big Hill lithium project, located in southwestern Newfoundland. Proceeds of the Offering will not be used for payments to non-arms length parties or to persons conducting investor relations activities.
In connection with the closing of the second tranche, the Company paid finders' fees totaling $15,050 and issued a total of 435,000 finder's warrants. Each finder's warrant is exercisable into one common share of the Company at a price of $0.05 until December 29, 2026. The securities issued under the Offering are subject to a hold period under applicable securities laws in Canada expiring four months and one day from December 29, 2023 and are subject to certain closing conditions including, but not limited to, the receipt of all necessary approvals including the final approval of the TSX Venture Exchange.
The FT Shares will qualify as "flow-through shares" (within the meaning of subsection 66(15) of the Income Tax Act (Canada) (the "Tax Act")). An amount equal to the gross proceeds from the issuance of the FT Shares will be used to incur eligible resource exploration expenses which will qualify as (i) "Canadian exploration expenses" (as defined in the Tax Act), and (ii) as "flow-through critical mineral mining expenditures" (as defined in subsection 127(9) of the Tax Act) (collectively, the "Qualifying Expenditures"). Qualifying Expenditures in an aggregate amount not less than the gross proceeds raised from the issue of the FT Shares will be incurred (or deemed to be incurred) by the Company on or before December 31, 2024 and will be renounced by the Company to the initial purchasers of the FT Shares with an effective date no later than December 31, 2023.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
About Azincourt Energy Corp.
Azincourt is a Canadian-based resource company specializing in the strategic acquisition, exploration, and development of alternative energy/fuel projects, including uranium, lithium, and other critical clean energy elements. The Company is currently active at its joint venture East Preston uranium project located in the Athabasca Basin, Saskatchewan, and the Big Hill lithium project, located in southwestern Newfoundland.
We seek Safe Harbor.