Mr. Lawrence Roulston reports
MOUNTAIN BOY INCREASES FINANCING TO $3 MILLION -- FLOW-THROUGH PORTION ONLY
The previously announced $2-million financing at 25 cents per unit has been fully subscribed, and Mountain Boy Minerals Ltd. is increasing the financing by $1-million with flow-through shares at 30 cents per flow-through share for a total of $3-million. The financing is expected to close shortly.
Proceeds will be used for continuing exploration at the company's properties in the Stewart area of British Columbia's Golden Triangle, including follow-up work on the BA silver-dominant volcanogenic massive sulphide project and planned drilling at the American Creek project.
The American Creek project is located in the highly prospective American Creek corridor of British Columbia's Golden Triangle. The project, which has a rich mining history, is road accessible and is located only 20 kilometres north of the deepwater sea port of Stewart. Mountain Boy has: consolidated a 2,600-hectare property; compiled historic production and exploration information; and a robust understanding of the geological setting.
The fully financed phase 1 of the 2020 exploration program is under way (see news release dated May 27, 2020)
and is designed to more precisely define drill targets for phase 2 of the program. The drill program is intended to confirm the geological model that points to district-scale silver-gold potential. The emerging geological model holds that the various mineralized occurrences are surface expressions of a large geological system. That system is interpreted to be analogous to the Premier district, located immediately west of the American Creek property (see news release dated May 21, 2020).
common shares are priced at 30 cents per common share.
The gross proceeds from the FT offering of flow-through shares will be invested in eligible exploration expenditures in the province of British Columbia, and certain British Columbia residents may be eligible for additional income tax deductions, making this offering's shares superflow-through shares.
Each unit will comprise one common share and one-half of one common share purchase warrant. Each full warrant shall be exercisable to acquire one common share at a price of 40 cents per warrant share for a period of 24 months from the date of closing.
All securities will be subject to a four-month hold period from the date of closing. The company may pay finders' fees, and insiders may participate in this offering.
The offering is subject to the approval of the TSX Venture Exchange and applicable laws.
We seek Safe Harbor.
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