VANCOUVER, British Columbia, July 29, 2019 (GLOBE NEWSWIRE) -- Group Ten Metals Inc. (TSX.V: PGE; OTC: PGEZF, FSE: 5D32) (the “Company” or “Group Ten”) is pleased to announce a non-brokered private placement for aggregate gross proceeds of up to $2 million (the "Offering") through the issuance of approximately 14 million units of the Company (the “Units”) at a price of $0.14 per Unit. Red Cloud Klondike Strike Inc. is acting as a finder in connection with the Offering.
Each Unit consists of one common share of the Company and one half-share purchase warrant (the “Warrant”). Each full warrant entitles the holder to acquire one common share of the Company at an exercise price of $0.21 per share for a period of 36 months following the closing date of the private placement. If, at any time after the closing date, the closing price of the Company’s common shares on the TSX Venture Exchange is greater than C$0.32 per share for a period of 10 consecutive trading days, the Company may elect to accelerate the expiry date of part or all of the Warrants, at any date that is 4 months and one day after the date of issuance of the Warrants, by giving notice thereof to the holders of the Warrants and, in such case, that portion of the Warrants will expire on the first day that is 30 business days after the date on which such notice is given by the Company.
The net proceeds from the Offering will be used for exploration at the Company’s Stillwater West PGE-Ni-Cu project in Montana, USA and working capital purposes.
The Offering complements more than $1.08 million raised to date by the voluntary exercise of warrants issued as part of the private placement financing completed in February 2017. Such exercises are on-going and are expected to continue as the warrants approach expiration in February 2020. A total of 18,477,553 warrants remain outstanding at an exercise price of $0.12 per warrant, providing the Company with up to $2.2 million in potential additional funding.
President and CEO Michael Rowley stated: “We are very excited to be launching our 2019 field program at Stillwater West. Since acquisition in 2017, our technical team has undertaken comprehensive compilation, modelling and data synthesis that has culminated in the identification of three advanced priority targets for follow-up drilling by Group Ten. As announced in our June 4, 2019 news release, we are focusing on the Chrome Mountain, Camp Zone, and Iron Mountain target areas. Each of these target areas is characterized by multi-kilometer soil and associated electro-magnetic conductor anomalies with between 6 and 21 drill holes that demonstrate a geologic setting that is comparable to the bulk-tonnage Platreef deposits in the Bushveld complex in South Africa. Over the past decade the Platreef deposits have been shown to host tens of millions of ounces of platinum and palladium, along with billions of pounds of nickel and copper, in a number of deposits that are amenable to bulk mining methods.”
Mr. Rowley continued, “Our technical team has arrived at site and we have permits in place to test all priority target areas. Drilling is anticipated to start in the near-term and we look forward to making further announcements in this regard within weeks. The proceeds from the private placement, along with cash-on-hand and the exercise of existing warrants, should enable the Company to move the project towards the next major milestone which is demonstration of the potential for multiple, large-scale, ‘Platreef-style’ PGE-Ni-Cu deposits at the Stillwater West Project.”
The closing of the Offering is subject to receipt of TSX Venture Exchange approval. A total of up to 14,285,714 Units may be issued pursuant to the placement, consisting of an equal number of common shares and 7,142,857 warrants. The securities, including any shares issuable on any exercise warrants, will be subject to a hold period of four months and one day in accordance with applicable securities laws.
This news release does not constitute an offer of securities for sale in the United States. The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and such securities may not be offered or sold within the United States absent U.S. registration or an applicable exemption from U.S. registration requirements.
About Group Ten Metals Inc.
Group Ten Metals Inc. is a TSX-V-listed Canadian mineral exploration company focused on the development of high-quality platinum, palladium, nickel, copper, cobalt and gold exploration assets in top North American mining jurisdictions. The Company’s core asset is the Stillwater West PGE-Ni-Cu project adjacent to Sibanye-Stillwater’s high-grade PGE mines in Montana, USA. Group Ten also holds the high-grade Black Lake-Drayton Gold project in the Rainy River district of northwest Ontario and the Kluane PGE-Ni-Cu project on trend with Nickel Creek Platinum‘s Wellgreen deposit in Canada‘s Yukon Territory.
About Metallic Group of Companies
The Metallic Group is a collaboration of leading precious and base metals exploration companies, with a portfolio of large, brownfields assets in established mining districts adjacent to some of the industry’s highest-grade producers of silver, platinum group metals and copper. Member companies include Metallic Minerals (TSX-V: MMG) in the Yukon’s Keno Hill silver district, Group Ten Metals (TSX-V: PGE) in the Stillwater PGE-Ni-Cu district of Montana, and Granite Creek Copper (TSX-V: GCX) in the Yukon’s Minto copper district. Highly experienced management and technical teams at the Metallic Group have expertise across the spectrum of resource exploration and project development from initial discoveries to advanced development, including strong project finance and capital markets experience and have demonstrated a commitment to community engagement and environmental best practices. The founders and team members of the Metallic Group include highly successful explorationists formerly with some of the industry’s leading explorer/developers and major producers and are undertaking a systematic approach to exploration using new models and technologies to facilitate discoveries in these proven historic mining districts.
The Metallic Group is headquartered in Vancouver, BC, Canada and its member companies are listed on the Toronto Venture, US OTC, and Frankfurt stock exchanges.
Quality Control and Quality Assurance
Mr. Mike Ostenson, P.Geo., is the qualified person for the purposes of National Instrument 43-101, and he has reviewed and approved the technical disclosure contained in this news release.
Forward-Looking Statements
This news release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts including, without limitation, statements regarding potential mineralization, historic production, estimation of mineral resources, the realization of mineral resource estimates, interpretation of prior exploration and potential exploration results, the timing and success of exploration activities generally, the timing and results of future resource estimates, permitting time lines, metal prices and currency exchange rates, availability of capital, government regulation of exploration operations, environmental risks, reclamation, title, and future plans and objectives of the company are forward-looking statements that involve various risks and uncertainties. Although Group Ten believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Forward-looking statements are based on a number of material factors and assumptions. Factors that could cause actual results to differ materially from those in forward-looking statements include failure to obtain necessary approvals, unsuccessful exploration results, changes in project parameters as plans continue to be refined, results of future resource estimates, future metal prices, availability of capital and financing on acceptable terms, general economic, market or business conditions, risks associated with regulatory changes, defects in title, availability of personnel, materials and equipment on a timely basis, accidents or equipment breakdowns, uninsured risks, delays in receiving government approvals, unanticipated environmental impacts on operations and costs to remedy same, and other exploration or other risks detailed herein and from time to time in the filings made by the companies with securities regulators. Readers are cautioned that mineral resources that are not mineral reserves do not have demonstrated economic viability. Mineral exploration and development of mines is an inherently risky business. Accordingly, the actual events may differ materially from those projected in the forward-looking statements. For more information on Group Ten and the risks and challenges of their businesses, investors should review their annual filings that are available at www.sedar.com.
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.
