Mountain Boy Minerals Ltd (TSX-V:MTB, OTCQB:MBYMF) has announced a non-brokered private placement for gross proceeds of up to C$1 million from the sale of up to 5,882,353 flow-through (FT) units of the company at a price of C$0.17 per FT unit.
Each FT Unit will consist of one common share of the company to be issued as a "flow-through share" within the meaning of the Income Tax Act (Canada) and one half of one common share purchase warrant. Each whole warrant will entitle the holder to purchase one common share of the company at a price of C$0.26 for a period of 24 months following the closing date of the offering.
The company intends to use the proceeds of the offering for the exploration of its projects in the prolific Golden Triangle of northern British Colombia.
READ: Mountain Boy confirms porphyry copper-gold mineralization, finds high-grade copper on its Telegraph project in British Columbia
The gross proceeds from the issuance of the FT shares will be used for 'Canadian Exploration Expenses', which will be renounced with an effective date no later than December 31, 2021, 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.
If the Qualifying Expenditures are reduced by the Canada Revenue Agency, the company will indemnify each subscriber of FT units for any additional taxes payable by such subscriber as a result of the company's failure to renounce the Qualifying Expenditures.
The closing of the offering is subject to receipt of all necessary regulatory approvals including the TSX Venture Exchange.
Red Cloud Securities Inc will be acting as a finder in connection with the offering. Finder's fees will be payable in accordance with the policies of the TSX Venture Exchange.
The FT shares, warrant shares and any common shares of the company that is issuable from any finder's warrants will be subject to a hold period of four months and one day following the closing date of the offering in accordance with applicable securities laws.
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, and may not be offered or sold in the United States or to, or for the account or benefit of, United States persons absent registration or an applicable exemption from the registration requirements of the US Securities Act and applicable US state securities laws.
Mountain Boy Minerals has six active projects spanning 604 square kilometres (60,398 hectares) in the prolific Golden Triangle of northern British Columbia.
The American Creek project is centered on the historic Mountain Boy silver mine and is just north of the past-producing Red Cliff gold and copper mine (in which the company holds an interest). The American Creek project is road accessible and 20 kilometres (km) from the deep-water port of Stewart.
On the BA property, 182 drill holes have outlined a substantial zone of silver-lead-zinc mineralization located 4 km from the highway.
Surprise Creek is interpreted to be hosted by the same prospective stratigraphy as the BA property and hosts multiple occurrences of silver, gold and base metals.
On the Theia project, work by Mountain Boy and previous explorers has outlined a silver-bearing mineralized trend 500 metres long, highlighted by a 2020 grab sample that returned 39 kilogrammes per tonne silver (1,100 ounces per ton).
Southmore is located in the midst of some of the largest deposits in the Golden Triangle. It was explored in the 1980s through the early 1990s, and was overlooked until Mountain Boy consolidated the property and confirmed the presence of multiple occurrences of gold, copper, lead and zinc.
The Telegraph project has a similar geological setting to major gold and copper-gold deposits in the Golden Triangle.
The Mountain Boy geological team assembled the results of work spanning several decades by more than 50 companies, each working on small target areas.
Contact the author at jon.hopkins@proactiveinvestors.com