Mr. Brad Kitchen reports
SECOVA ANNOUNCES EXTENSION AND INCREASE OF ITS PREVIOUSLY ANNOUNCED PRIVATE PLACEMENT
Secova Metals Corp. has extended the offering period on its private placement announced on Dec. 19, 2018, to Feb. 23, 2019. This private placement is a non-brokered private placement pursuant to which the company will now issue up to 10 million units at a purchase price of five cents per unit for total gross proceeds of $500,000 (an increase of 2.0 million units). Each unit consists of one common share and one additional common share warrant for a period of two years from issuance at an exercise price of 10 cents per common share. There is an acceleration clause that if the common shares of Secova trade at or above 20 cents per share for a period of 10 trading days during the last year of the warrant period, then the warrant must be exercised within 15 business days. The company has completed its first tranche of the financing with the receipt of subscriptions for 4.0 million units.
"The reason for the extension and small increase in this offering is a direct result of the recent appointment of Daniel Danis to the board of directors," stated Brad Kitchen, chief executive officer of Secova. "We have received a very positive response from investors who have expressed interest in participating in the private placement at these levels."
In connection with the financing, the company may pay an 8-per-cent cash finder's fee and issue 8-per-cent finders' warrants. The finders' warrants for the units will be exercisable into common shares for a period of one year at an exercise price of five cents per common share.
The issuance of the units and finders' warrants will be subject to TSX Venture Exchange approval and once issued, subject to a fourth-month hold period.
Proceeds from the financing will be used for exploration and development of the company's advanced gold projects in Quebec.
About Secova Metals Corp.
Secova Metals is a Canadian gold exploration company focused on building a strong asset base through exploration of undervalued gold projects in Canada. Management has demonstrated expertise in advancing gold exploration projects into acquisition targets, most notably in the province of Quebec.
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