Mountain Boy Minerals Ltd (TSX-V:MTB, OTCQB:MBYMF) has announced that the non-brokered private placements for flow-through (FT) and non-flow-through units totalling $1.4 million, as announced on December 16, 2021, and increased on December 22, 2021, have been closed.
The company said the funds will be used primarily for exploration on Mountain Boy’s properties in the Golden Triangle of British Columbia.
In a statement, Mountain Boy president and CEO Lawrence Roulston commented: “These new funds, added to the existing working capital, puts Mountain Boy in a strong position to continue an aggressive exploration program across our six Golden Triangl properties. Even though we don’t have geologists in the field at this time, there is still an enormous amount of work underway."
"The geological team, in cooperation with some top research groups, continues to extract scientific information from the samples taken during the past field season and to integrate that new information with the wealth of information generated previously. We expect to have a great deal more information in hand as a basis for planning the next field season," he added.
READ: Mountain Boy Minerals increases its private placement to C$1.3M
Mountain Boy raised gross proceeds of $1,289,800 from the sale 7,587,057 FT Units. Each FT unit consists 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.
The price of each FT Unit is $0.17. 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.
In addition, Mountain Boy also closed a non-brokered private placement of units at $0.17 per unit for gross proceeds of $150,000 with a strategic investor. Each unit will consist of one common share and one half of one common share purchase warrant. Each unit warrant will entitle the holder to purchase one common share of the company at a price of $0.20 for a period of 24 months following the closing date of the offering.
Red Cloud Securities Inc acted as a finder in connection with the FT unit offering. Finder’s fees of 7% cash and 7% in finder’s warrants were paid to eligible parties.
All securities are subject to a four-month hold period expiring on April 30, 2022.
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 has six active projects spanning 604 square kilometres (60,398 hectares) in the prolific Golden Triangle of northern British Columbia.
Contact the author at jon.hopkins@proactiveinvestors.com