MTB Metals Corp (TSX-V:MTB, OTCQB:MBYMF) has announced a non-brokered private placement for gross proceeds of up to C$1.25 million.
The funds will be raised from the sale of any combination of flow-through (FT) units of the company at a price of C$0.13 each and non-flow-through (NFT) units of the company at a price of C$0.12 each.
Each FT unit will consist of one common share of the company and one common share purchase warrant, to be issued as a 'flow-through share' within the meaning of the Income Tax Act (Canada). Each FT unit warrant will entitle the holder to purchase one common share of the company at a price of C$0.18 for a period of 24 months following the issue date.
Each NFT unit will consist of one common share of the company and one common share purchase warrant, with each warrant entitling the holder to purchase one warrant share at a price of C$0.18 for a period of 36 months following the issue date.
The company said it intends to use the proceeds of the offering for the exploration of its projects in the Golden Triangle of northern British Colombia.
The gross proceeds from the issuance of the FT shares will be used to incur resource exploration expenses that will constitute 'Canadian exploration expenses' and 'flow through mining expenditures', which will be renounced with an effective date no later than December 31, 2023. This renunciation will be made to the purchasers of the FT units in an aggregate amount not less than the gross proceeds raised from the issue of the FT Shares.
Red Cloud Securities Inc. will be acting as a finder in connection with the offering. The closing of the offering is subject to receipt of all necessary regulatory approvals, including the TSX Venture Exchange.
The securities offered have not been, and will not be, registered under the United States Securities Act of 1933, as amended or any US state securities laws.
MTB has six active projects spanning 670 square kilometres in the Golden Triangle of northern British Columbia, with a focus on the Telegraph project. Discussions are now underway leading to joint ventures and/or spinouts of other projects.
Contact the author at jon.hopkins@proactiveinvestors.com