Finlay Minerals announces private placement financing with strategic investment from Crescat Capital
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VANCOUVER, BC, June 17, 2021 / CNW / – Finlay Minerals Ltd. (TSXV: FYL) (“Finlay” or the “Company) is pleased to announce a non-middleman private placement financing project for aggregate gross proceeds of up to $ 2,000,000 (the “Private Placement”). In connection with the Private Placement, Crescat Capital LLC (“Crescat”) has agreed to make a strategic investment in the Company and will have the right and option to participate in future financings in order to maintain its participation for a period of three years from the closing date of the Private Placement.
Kevin smith, Crescat Founder and Chief Investment Officer said:
“Crescat’s goal at this point in the cycle is to identify and invest in a portfolio of leading exploration assets that the majors will need to replace their reserves after a decade of underinvestment. We think Finlay is one of the most exciting money stories in Canada today.“
Robert brown, President and CEO of Finlay Minerals Ltd said:
“Finlay management is excited to move forward with exploration on the Silver Hope project through strategic investment from Crescat Capital. New exploration concepts were tested in 2020 and led to the discovery of the new Equity East area, which will be one of the targeted areas in 2021.“
The Private Placement will consist of: (i) up to 11,111,111 units (each, a “NFT unit“), at the price of $ 0.09 per NFT unit, each NFT unit comprising one ordinary share of the Company (each, one “Unit share“) and one common share purchase warrant (each, a”Unit subscription certificate“); and (ii) up to 8,333,333 flow-through units (“FT units“), at the price of $ 0.12 per FT unit (the “Unit price FT“), each FT unit comprising one ordinary share of the Company which qualifies as a” flow-through share “within the meaning of Income Tax Act (Canada) and a Unit Voucher.
Each unit warrant will entitle its holder to acquire one additional common share of the Company (each, a “Warrant share“) at an exercise price of $ 0.135 per warrant share for a period of twenty-four months from the issuance of each unit subscription warrant.
The private placement is subject to certain conditions including, but not limited to, receipt of all necessary approvals, including approval from the TSX Venture Exchange. In addition, depending on market conditions, the Company may pay a finder’s commission on a portion of the Private Placement in accordance with the rules and policies of the TSX Venture Exchange. The Company plans to carry out the Private Placement in one or more tranches.
The net proceeds of the private placement will be used to fund general working capital and operating capital, including induced polarization geophysical surveys of the newly discovered Equity East area in 2020, the expansion of the soil sampling grid, geologic mapping and rock sampling, and other Core Priority Actions target silver and porphyry copper core drilling on the Silver Hope property.
The securities offered will not be registered under the United States Securities Act of 1933, as amended and may not be offered or sold in the United States no registration or exemption from registration requirements. This press release does not constitute an offer to sell or a solicitation of an offer to buy the securities of United States.
About Finlay Minerals Ltd.
Finlay is a TSX Venture Exchange company focused on exploring for base and precious metal deposits in the north British Columbia. The properties of the Company are:
the Hope for money The property, which surrounds the former Equity silver mine, includes the newly discovered Equity East target in 2020, porphyry copper-molybdenum mineralization discovered in 2010, as well as three silver-copper mineralized zones, in an alignment contiguous with the depleted deposits of the former Equity Silver Mine (71 million ounces of silver, 185 million pounds of copper and 508,000 oz of gold; Reference: http://minfile.gov.bc.ca/Summary.aspx?minfilno=093L++001).
the ATTY Property that abuts the north side of the Kemess East deposit and adjacent to the Kemess Underground deposit of Centerra Gold Inc., and
the PIL The property, which is adjacent to Sable Resource’s Baker Mine, has eight known copper-gold-molybdenum porphyry mineralized zones, including several gold-silver epithermal structural systems.
About Crescat Capital LLC
Crescat is a global macro asset management company based in Denver, Colorado. Crescat’s mission is to grow and protect wealth over the long term by deploying tactical investment themes based on value-driven equity and macro-proprietary models. Crescat’s goal is to generate leading absolute and risk-adjusted returns over full economic cycles with low correlation to common benchmarks. Crescat’s investment process involves a mix of asset classes and strategies to meet the unique needs and objectives of each client and includes Global Macro, Long / Short, Large Cap and Precious Metals funds.
Crescat is advised by its technical consultant Dr. Quinton Hennigh on investments in gold and silver resource companies. Dr Hennigh became an economic geologist after obtaining his doctorate. in geology / geochemistry of Colorado School of Mines. He has over 30 years of exploration experience with major gold mining companies including Homestake Mining, Newcrest Mining and Newmont Mining. Recently, Dr Hennigh founded Novo Resources Corp. and is its president. Notable project holdings include First Mining Gold’s Springpole gold deposit in Ontario, Kirkland Lake Gold’s the acquisition of the Fosterville gold mine in Australia, the Rattlesnake Hills gold deposit in Wyoming, and Lion One’s Tuvatu gold project on Fiji.
Robert brown, ing. is the Qualified Person as defined by National Instrument 43-101 and has approved the technical content of this press release.
Finlay Minerals Ltd. trades under the symbol “FYL” on the TSX Venture Exchange. For more information and details, please visit the company’s website at www.finlayminerals.com.
On behalf of the Board of Directors,
Robert F. Brown, ing.,
Chairman and Chief Executive Officer and Director
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-looking information: This press release includes certain “forward-looking information” and “forward-looking statements” (collectively, “forward-looking statements”) within the meaning of applicable Canadian securities laws. All statements in this press release that deal with events or developments that we expect to occur in the future are forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by words such as “expect”, “plan”, “anticipate”, “project”, “target”, ” potential “,”, “forecast”, “budget”, “estimate”, “intend” or “believe” and similar expressions or their negative connotations, or that events or conditions “will”, “would be” , “could”, “could”, “should” or “could” occur. Forward-looking statements contained in this press release include statements concerning, among other things, the early closing of the Private Placement, the anticipated size of the Private Placement in one or more tranches, the anticipated size of the Private Placement, the participation of Crescat and the equity owned by Crescat, the obtaining of the approval of the TSX Venture Exchange, the intended use of the proceeds of the private placement and the exploration plans Company properties. Although Finlay believes that the expectations expressed in these forward-looking statements are based on reasonable assumptions, these statements are not guarantees of future performance and actual results or developments may differ materially from these forward-looking statements. Factors that could cause actual results to differ materially from those of forward-looking statements include market prices, exploration successes and the continued availability of capital and financing, and general economic, market or business conditions. These forward-looking statements are based on a number of assumptions, including, but not limited to, assumptions regarding general business and economic conditions, the timing and receipt of regulatory and government approvals, the ability of Finlay and other parties to meet the stock exchange and other requirements in a timely manner, the availability of funding for transactions and programs offered by Finlay on reasonable terms, and the ability of third party service providers to provide services in a timely manner. Investors are cautioned that these statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in the forward-looking statements. Finlay assumes no obligation to update or revise its forward-looking statements, whether as a result of new information, future or otherwise, except as required by applicable law.
SOURCE Finlay Minerals Ltd.
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