(TheNewswire)
Vancouver, BC / TheNewswire / July 28, 2017 - FIRESTEEL RESOURCES INC. (TSX-V: FTR) (" Firesteel " or the " Company ") today announced that it has closed it’s the final tranche of its previously announced private placements (the “ Final
Tranche ”).
Specifically, the Company issued 10,665,183 units
(“ Units ”) to raise gross proceeds of $ 799,888
. Each Unit consists of one common share of the Corporation (“ Common Share
”) and one-half of one Common Share purchase warrant (“ Warrant ”). Each whole Warrant is exercisable at $0.15 for 2 years from the date hereof.
The Company also issued $ 199,000 face amount of 9%
convertible unsecured debentures (“ Debentures ”). The Debentures may be
converted by the holders at $0.10 per Common Share until the maturity date of June 30, 2020. The Company also has the right
to accelerate the conversion of the Debentures at any time following 24 months after today’s date into Common Shares if the Common
Shares trade above $0.25 for twenty consecutive days.
In connection with the Final Tranche, the Company paid finder’s fees of $ 23,630.60 to Canaccord Genuity Corp. The Company also issued: (i) 159,200 finder’s warrants, exercisable to purchase Common Shares, at a price of $0.10 per Common Share
for a two year period; and (ii) 102,808 finder’s warrants, exercisable to purchase
Units (at a price of $0.075 per Unit) for a two year period.
The Final Tranche is subject to the final acceptance of the TSX Venture Exchange, all securities
issued pursuant to the Final Tranche bear a four month and one day hold period in accordance with applicable Canadian securities
laws.
Officers and directors of the Company purchased an aggregate of $ 161,004 of Units pursuant to the Final Tranche. Pursuant to Multilateral Instrument 61-101
Protection of Minority Security Holders in Special Transactions (“ MI 61-101 ”), the Final Tranche constitutes a “related party transaction” as insiders of the Company
subscribed for Units. The Company is relying on exemptions from the formal valuation and minority approval requirements of MI
61-101.
The Company intends to use the net proceeds from the Final Tranche to fund its working capital and
its previously announced proposed joint venture transaction with Nordic Mines.
About the Company
Firesteel is an exploration-stage junior mining
company engaged in the acquisition and exploration of prospective precious and base metal properties in Canada and stable
jurisdictions around the world.
Firesteel currently has one highly prospective property in British Colombia.
The Star property is
currently operated under a Joint Venture agreement between Firesteel (49%) and Prosper Gold. (TSX-V: PGX)
(51%).
Previous highlights of the Star property include:
-6,700 Ha property hosts five significant Cu-Au targets
-Star Target – In 2014 a total of 6221.5 meters were drilled in 19 holes. Recent drill results
include 107m of 0.77% Cu & 0.41 g/t Au including 64m of 1.12% Cu & 0.59 g/t Au (previously reported September 23,
2014) .
Qualified Person
The scientific and technical information in this news release has been reviewed and approved by Paul Sarjeant,
P.Geo., a Qualified Person under National Instrument 43-101 and a director of the company.
For a detailed overview of Firesteel Resources Inc. please visit:
www.FiresteelResources.com
For further information, please contact:
Michael Hepworth
President and Chief Executive Officer
(416)419 5192
mhepworth@firesteelresources.com
www.firesteelresources.com
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Neither the TSX Venture Exchange nor its Regulation Services Provider (as that
term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this
release
Advisory Regarding Forward Looking Statements
This news release contains forward-looking statements. Users of forward-looking statements are
cautioned that actual results may vary from forward-looking statements contained herein. Forward-looking statements include, but
are not limited to: expectations, opinions, forecasts, projections and other similar statements concerning anticipated future
events, conditions or results that are not historical facts. In certain cases, forward-looking statements can be identified by the
use of words such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”,
“intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or statements that
certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be
achieved”. While the Company has based these forward-looking statements on its expectations about future events as at the date
those statements were prepared, the statements are not a guarantee of the Company’s future performance. Although the Company
believes that the expectations reflected in such forward-looking statements are reasonable, it cannot give any assurance that such
expectations will prove to be correct.
The Company’s forward-looking statements are expressly qualified in their entirety by this
cautionary statement and are made as of the date of this new release. Unless otherwise required by applicable securities
laws, the Company does not intend nor does it undertake any obligation to update or review any forward-looking statements to
reflect subsequent information, events, results or circumstances or otherwise.
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