19:40:20 EDT Sat 08 Aug 2020
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San Marco Resources Inc (3)
Symbol SMN
Shares Issued 35,757,237
Close 2020-06-30 C$ 0.27
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San Marco increases private placement to $4-million

2020-06-30 15:41 ET - News Release

Ms. Sharyn Alexander reports


San Marco Resources Inc., due to strong investor demand, is increasing the size of its non-brokered private placement offering to $4-million 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. Eventus Capital Corp. has been appointed as a finder in connection with the offering, and will be paid a 7-per-cent cash fee and issued that number of compensation warrants (having the terms described herein) equal to 7 per cent of the units sold.

Bob Willis, chief executive officer and director, stated: "San Marco very much appreciates the strong support from the institutional investor community. We are looking forward to continue a very expanded drill program at the Buck property as soon as possible."

Each unit will consist of one flow-through common share and one-half of a common share purchase warrant. Each whole warrant will entitle the purchase of one (non-flow-through) common share for 24 months at a price of 34 cents. If the closing price of the company's common shares is greater than 70 cents for 10 consecutive trading days, San Marco will have the right to accelerate the expiry date of the warrants by giving notice, by a new release, to the warrant holders 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 26 cents per share and will not be subject to the acceleration provision.

Common shares comprising part of the units issued under the charity flow-through unit offering and flow-through 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 financing 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 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 and Mexico.

We seek Safe Harbor.

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