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Mountain Boy Minerals Ltd (2)
Symbol MTB
Shares Issued 36,710,382
Close 2020-07-09 C$ 0.45
Recent Sedar Documents

Mountain Boy closes $2M unit portion of financing

2020-07-09 09:27 ET - News Release

Mr. Lawrence Roulston reports

MOUNTAIN BOY CLOSES $2,000,000 UNIT FINANCING: ERIC SPROTT TO PURCHASE 4 MILLION UNITS

Mountain Boy Minerals Ltd. has closed the unit portion of the private placement announced June 15, 2020, and increased on July 3, 2020. A total of eight million units were issued at an offering price of 25 cents per unit for gross proceeds to the company of $2-million. 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.

Eric Sprott, through 2176423 Ontario Ltd., a corporation that is beneficially owned by him, acquired four million units pursuant to the private placement for a total consideration of $1-million. Subsequent to the private placement, Mr. Sprott beneficially owns or controls four million shares of the company and two million warrants representing approximately 8.9 per cent of the issued and outstanding shares of the company on a non-diluted basis and approximately 12.9 per cent of the issued and outstanding shares of the company on a partially diluted basis assuming exercise of the warrants acquired hereunder and forming part of the units. Prior to the financing, Mr. Sprott did not beneficially own or control any share of the company.

The units were acquired by Mr. Sprott for investment purposes. Mr. Sprott has a long-term view of the investment and may acquire additional securities of Mountain Boy including on the open market or through private acquisitions or sell securities of Mountain Boy including on the open market or through private dispositions in the future depending on market conditions, reformulation of plans and/or other factors that Mr. Sprott considers relevant from time to time.

A copy of Mr. Sprott's early warning report will appear on Mountain Boy's profile on SEDAR and may also be obtained by calling Mr. Sprott's office at 416-945-3294 (200 Bay St., Suite 2600, Royal Bank Plaza, south tower, Toronto, Ont., M5J 2J1).

The net proceeds of the offering will be used for exploration of the company's projects in British Columbia's Golden Triangle, including planned drilling of the American Creek project, and general working capital purposes. The common shares issued under this placement are subject to a four-month hold period until Nov. 8, 2020. Insiders purchased 310,000 units of this unit financing. Finders' fees of $18,570 in cash and 74,280 finder's warrants were paid to eligible parties.

Flow-through financing details

The flow-through financing announced July 3, 2020, is fully subscribed and expected to close shortly. Flow-through 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 commonly referred to as superflow-through shares.

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 be participating in this offering.

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