Mr. Paul Cowley reports
FIRST VANADIUM ANNOUNCES FIRST TRANCHE CLOSING OF FINANCING - INSIDERS PARTICIPATE
First Vanadium Corp. has closed the first tranche of its non-brokered private placement financing previously announced on May 21, 2019. Under the first tranche, the company has issued 2,125,500 units at a price of 40 cents per unit for gross proceeds of $850,200. Each unit comprises one common share and one warrant. Each warrant will be exercisable into one common share for a period of three years at an exercise price of 65 cents per share. In connection with the first tranche, the company paid a finder's fee of $2,100 to PI Financial Corp.
Certain directors, officers and close associates of the company participated in the first tranche and purchased an aggregate of 898,000 units for aggregate gross proceeds of $359,200. Participation by insiders of the company in the offering is considered a related party transaction pursuant to Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions. The company is exempt from the requirements to obtain a formal valuation and minority shareholder approval in connection with the insiders' participation in the offering in reliance of sections 5.5(a) and 5.7(a) of MI 61-101, respectively, on the basis that participation in the private placement by the insiders did not exceed 25 per cent of the fair market value of the company's market capitalization.
All securities issued under the first tranche are subject to a hold period expiring Oct. 7, 2019, in accordance with applicable securities laws and the policies of the TSX Venture Exchange.
The second tranche of the offering for additional proceeds of up to $349,800 is expected to close on or before June 28, 2019.
About First Vanadium Corp.
First Vanadium has an option to earn a 100-per-cent interest in the Carlin vanadium project, located in Elko county, six miles south from the town of Carlin in Nevada on Highway I-80. The Carlin vanadium project hosts the Carlin vanadium deposit, which is flat to shallow dipping and at shallow depths with strike length of approximately 1,800 metres, width averaging 600 metres and thickness ranging from 15 metres to 50 metres. The company announced its maiden resource on Feb. 27, 2019.
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