Mr. Gary Thompson reports
BRIXTON METALS ANNOUNCES CLOSING OF $4.46M PRIVATE PLACEMENT AND ADDS MR. BROCK RIEDELL AS SENIOR TECHNICAL ADVISOR TO THE COMPANY
Brixton Metals Corp. has closed a non-brokered private placement of flow-through common shares of the company for gross proceeds of $4,461,120. Each flow-through (FT) share was issued at a price of 36 cents and comprises one common flow-through share of the company. The company issued a total of 12,392,002 FT shares pursuant to the private placement.
Chairman and chief executive officer of Brixton Metals Gary R. Thompson stated: "Brixton is now fully funded going into 2021. Brixton will end 2020 with a treasury of about $9-million. This winter, we are drilling for high-grade silver and cobalt at the Langis project in Cobalt, Ont., and will be drilling further high-impact targets at the Thorn project next season. We're encouraged by the confidence we've seen from major shareholders and are looking forward to positive near-term catalysts."
The gross proceeds from the issuance of the FT shares will be used for Canadian exploration expenses (within the meaning of the Income Tax Act (Canada)), which will be renounced to the subscribers with an effective date no later than Dec. 31, 2020, to the initial purchasers of the FT shares in an aggregate amount not less than the gross proceeds raised from the issue of the FT shares, as applicable, and, if the qualifying expenditures are reduced by the Canada Revenue Agency, the company will indemnify each FT shares subscriber for any additional taxes payable by such subscriber as a result of the company's failure to renounce the qualifying expenditures as agreed.
The net proceeds from the issuance of FT shares shall be primarily used for exploration activities.
Finders acting in connection with the closing of this private placement received finders' fees in the aggregate total amount of $137,420.84 and were issued an aggregate of 381,724 finders' warrants. Each finder's warrant is exercisable for one common share of the company at an exercise price of 36 cents for a period of 24 months from the date of closing of the private placement.
One insider of the company participated in the private placement in the amount of 83,350 FT shares. Participation by insiders constitutes a related-party transaction as defined under Multilateral Instrument 61-101 (Protection of Minority Security Holders in Special Transactions). The issuance of securities to the related party is exempt from the formal valuation requirements of Section 5.4 of MI 61-101 pursuant to Subsection 5.5(b) of MI 61-101 and exempt from the minority shareholder approval requirements of Section 5.6 of MI 61-101 pursuant to Subsection 5.7(b) of MI 61-101.
The FT shares and any finders warrants, including all underlying securities thereof, issued with respect to the private placement, will be subject to a hold period of four months and one day in accordance with applicable securities laws and the policies of the TSX Venture Exchange.
K. Brock Riedell
Mr. Riedell has over 40 years of experience in minerals exploration and mining economic analysis. During his career he has been involved in porphyry, volcanic and sediment-hosted gold discoveries in British Columbia, Nevada, Utah and Arizona. Since 2009, he has been a Vancouver-based consulting geologist focused on porphyry copper/gold/molybdenum exploration in the Americas. He has consulted to Brixton, primarily on the Thorn project, since mid-2018. Other clients have included Imperial Metals (Red Chris and Catface, British Columbia), Fortuna Silver (Lindero, Argentina), Adventus Mining (Pijili and Santiago, Ecuador), Redhawk Resources (Copper Creek, Arizona), and Abacus Mining and Exploration (Willow, Yerington district, Nevada). From 1995 to 2009, he worked for BHP in the Western United States, Chile and Canada; he served as global chief geologist from 2002 to 2005. His early career was mostly in Western United States exploration roles with Exxon Minerals and Newmont.
Mr. Thompson stated: "We are delighted to have Mr. Brock Riedell step into a larger role as senior technical adviser at Brixton Metals. Brock has served as a consultant to the company for a number of years and he brings a wealth of porphyry experience to the team. In addition to Brock's work with the company, we plan to continue work with UBC's MDRU (mineral deposit research unit) as we look to unlock the giant porphyry potential at the company's wholly owned 2,600-square-kilometre Thorn project."
About Brixton Metals Corp.
Brixton is a Canadian exploration and development company focused on the advancement of its gold and silver projects toward feasibility. Brixton wholly owns four exploration projects -- the Thorn copper-gold-silver and the Atlin goldfields projects located in northwestern British Columbia, the Langis-Hudson Bay silver-cobalt project in Ontario, and the Hog Heaven silver-gold-copper project in northwestern Montana, United States.
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