Mr. Gary Musil reports
INT. MONTORO RESOURCES RECEIVES CONDITIONAL APPROVAL OF $350,000 FINANCING AT $0.035 PER UNIT
Further to its news release of Jan. 9, 2020, International Montoro Resources Inc. has received conditional approval of the discretionary waiver financing, as the proposed subscription price is below the minimum allowed, pursuant to the policies.
The company proposes to proceed with a non brokered private placement of up to $350,000 with 10.0 million units to be issued at 3.5 cents. Each unit will comprise one common share and one transferable share purchase warrant. Each whole warrant will permit the holder to acquire one additional common share of the company at a price of five cents for two years from closing.
The company may pay commissions of 8 per cent to eligible parties in connection with this financing, payable either in cash and/or in warrants.
Depending on demand and regulatory requirements, a portion of the financing may be made in accordance with the provisions of the existing shareholder exemption. Subject to applicable securities laws, the company will permit each person who, or company which, as of Jan. 16, 2020 (being the record date set by the company pursuant to Multilateral CSA Notice 45-313, Prospectus Exemption for Distributions to Existing Security Holders), hold common shares as of that date to subscribe for the units that will be distributed pursuant to the financing, provided that the existing securityholder exemption is available to such person or company. Pursuant to CSA 45-313, each subscriber relying on the existing securityholder exemption may subscribe for a maximum of 300,000 units, being such amount of units that results in an acquisition cost of less than or equal to $15,000 for such subscribers, unless a subscriber is resident in a jurisdiction of Canada and has obtained advice regarding the suitability of the investment from a registered investment dealer (in which case such maximum subscription amount will not apply). In the event that aggregate subscriptions for units under the financing exceeds the maximum number of securities to be distributed, then units will be sold to qualifying subscribers on a pro rata basis based on the number of units subscribed for. Any current shareholder subscribing for units pursuant to a prospectus exemption other than the existing security holder exemption will not be limited to a maximum of 300,000 units or 300,000 FT shares.
In addition to conducting the financing pursuant to the existing securityholder exemption, the company will also accept subscriptions for units where other prospectus exemptions are available such as close personal friends and business associates of directors and officers of the company, accredited investors and in accordance with the exemption set out in British Columbia Instrument 45-536, Exemption from prospectus requirement for certain distributions through an investment dealer.
The company confirms there is no material fact or material change relating to the company that has not been generally disclosed.
The company intends to use the net proceeds from the financing for continued exploration on its existing properties (Serpent River-Pecors, Wicheeda North and Duhamel). This will account for approximately $250,000.
The balance of $100,000 will maintain existing operation expenses as follows: regulatory fees, $5,000; office rent and communication expenses, $5,000; transfer agent fees, $2,000; legal and accounting,$15,000; partial loan and interest repayment, $15,000; investor and shareholder relations, including travel and advertising, $15,000; management fees, $10,000; outstanding payables and unallocated working capital, $33,000.
While the company intends to spend the net proceeds from the financing as stated above, there may be circumstances where, for sound business reasons, funds may be reallocated at discretion of the board.
The closing of the private placement financing, including the issuance of the securities and the finders' fees, are subject to exchange approval.
About International Montoro Resources Inc.
International Montoro, listed on the TSX Venture Exchange for over 25 years, is a Canadian-based emerging resource company.
We seek Safe Harbor.
© 2020 Canjex Publishing Ltd. All rights reserved.