Ms. Sharyn Alexander reports
SAN MARCO ARRANGES $2 MILLION FLOW-THROUGH PRIVATE PLACEMENT FINANCING
San Marco Resources Inc. has arranged a non-brokered private placement consisting of: (i) charity flow-through units at a price of 34 cents each; and (ii) flow-through units at a price of 26 cents each for gross aggregate proceeds of $2-million. Eventus Capital Corp. has been appointed as a finder in connection with the Offering and will be paid a 7% cash fee and issued that number of compensation warrants (having the terms described below) equal to 7% of the Units sold.
Each Unit will consist of one 'flow-through' common share and one half of a common share purchase warrant. Each whole warrant (a "Warrant") will entitle the purchase of one (non-flow-through) common share for 24 months at a price of $0.34. If the closing price of the Company's common shares ("Common Shares") is greater than $0.70 for 10 consecutive trading days, San Marco will have the right to accelerate the expiry date of the Warrants by giving notice, via a new release, to the Warrantholders that the Warrants will expire 30 days after the issuance of the news release. The compensation warrants will be exercisable for two years at a price of $0.26 per share and will not be subject to the acceleration provision.
Common Shares comprising part of the Units issued under the Charity FT Unit Offering and FT Unit Offering will qualify as flow through shares under the Income Tax Act (Canada). The gross proceeds from the Offering will be used to incur 'Canadian exploration expenses' that will qualify as 'flow through mining expenditures' under the Income Tax Act and will be renounced to the initial purchasers of the Flow Through Shares.
Proceeds of the Offering will be used for funding exploration of the Company's Buck Property. Closing of the Offering is expected on or about July 21, 2020. All the securities issued pursuant to the Offering will be subject to a four month restricted resale period. Completion of the placement is subject to the approval of the TSX Venture Exchange.
About San Marco Resources Inc.
San Marco Resources is a Canadian mineral exploration company actively pursuing world class gold, silver, zinc and copper projects with a focus in mining friendly jurisdictions in both British Columbia, Canada and Mexico.
The Company's principal focus and asset is the recently optioned Buck Property in north-central British Columbia that has large tonnage gold-silver-zinc potential in a mining-friendly region and includes many former and current operating mines. The Company's portfolio also includes the several prospective, early stage exploration properties in Mexico.
San Marco is committed to environmental and social responsibility with a focus on responsible development to generate positive outcomes for all stakeholders.
We seek Safe Harbor.
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