Mr. Charles Desjardins reports
PISTOL BAY UPDATES ACTIVITIES
Pistol Bay Mining Inc. is providing an update on its plans in Confederation Lake as well as in looking at opportunities outside of the resource sector and opportunities in the cannabis industry.
The company is presently in communication with multiple companies interested in joint ventures in certain land packages in Confederation Lake. These joint venture proposals are being studied and the company hopes to make a decision in the near future. Pistol Bay is also looking at certain land packages within Confederation Lake to drill itself.
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On Sept. 4, 2018, Pistol Bay had entered into an exclusivity agreement with a private Ontario company (Privco) that allows Pistol Bay to undertake due diligence on the products, the intellectual property surrounding the products and the market opportunities for both the foundational product, as well as new product applications containing cannabinoids. The parties are at arm's length. No business or financial terms have been agreed to at this point and there can be no assurance that Pistol Bay will decide to proceed with a transaction following completion of due diligence, or that the parties will agree on financial or business terms.
The company is currently still undertaking its due diligence with Privco and it expects a decision in the very near future (see news release dated Sept. 6, 2018). The company's exclusivity agreement with this company has expired but both sides continue to negotiate in good faith.
The first tranche of a non-brokered private placement financing for total gross proceeds of $425,000 was closed on Oct. 25, 2018 (see news release dated Oct. 25, 2018).
The company has allotted and issued 8.5 million units at a price of five cents per unit. Each unit comprises one common share and one transferable warrant, with each warrant entitling the holder to purchase one additional common share of the company for a period of up to 18 months at a price of eight cents. In addition, the company has paid finders' fees of a total of $2,000 and issued an aggregate 40,000 finder warrants. Each finder warrant is exercisable into one common share for a period of up to 12 months at a price of five cents.
The company is proceeding to close the remaining $325,000 of this private placement. This will be announced as soon as it is completed.
About Pistol Bay Mining Inc.
Pistol Bay Mining is a diversified junior Canadian mineral exploration company with a focus on zinc and base metal properties in North America. The company is also actively pursuing the right opportunity in the cannabis space looking to enhance shareholders value.
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