Mr. Geoff Schellenberg reports
TROUBADOUR CLOSES FINANCING
Troubadour Resources Inc. has closed the financing announced on Oct. 9, 2019.
Closing of financing
Troubadour Resources has closed a non-brokered private placement financing comprising 5.15 million units of the company at a price of five cents per unit for gross proceeds of $257,500.
Each unit will comprise one common share of the company and one share purchase warrant of the company, with each warrant entitling the holder to purchase one additional share at a price of 10 cents for a period of two years from the date of issue.
Insiders subscribed for a total of 1.2 million units for total proceeds of $60,000. The issuance of units to insiders is considered a related party transaction, subject to Multilateral Instrument 61-101. The company is relying on exemptions from the formal valuation and minority shareholder approval requirements provided under sections 5.5(a) and 5.7(a) of MI 61-101 on the basis that the participation in the private placement by the insiders does not exceed 25 per cent of the fair market value of the company's market capitalization.
The company intends to use the gross proceeds of the financing for the company's current drill program on the Amarillo property and general working capital. The financing is subject to the prior approval of the TSX Venture Exchange.
The Amarillo project is host to some of the more prospective targets developed in this world-class porphyry camp in decades. The multiple overprinting anomalies (for example, soil geochemical, prospecting and geophysical anomalies) established over the last couple of years compound the potential for a major discovery. Last year's drill program was of limited extent, focused on a small region of the project area and did not drill the most prospective signatures.
The Amarillo project comprises seven mineral tenures totalling 4,178 hectares and is situated within the heart of a major mining district. The multielement geochemical signature of the Amarillo project is consistent with a large multiphase mineralizing system and is acutely similar to some of the neighbouring mining operations, such as the Brenda copper-molybdenum-silver-gold (Cu-Mo-Ag-Au) porphyry mine located 10 kilometres to the north that produced 278,000 tonnes of copper, 66,000 tonnes of molybdenum, 125 tonnes of silver and two tonnes of gold over a 20-year mine life.
Patrick McLaughlin, professional geoscientist, a qualified person as defined by National Instrument 43-101, has reviewed and approved the technical contents of this news release.
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