Murchison Minerals Ltd (TSX-V:MUR, OTCQB:MURMF, TSX-V:MUR.V) said it has completed its previously-announced C$5.35 million non-brokered private placement, which included the participation of strategic investor Michael Gentile and the company’s largest shareholder Donald Johnson.
The exploration company said proceeds from the offering will be directed towards exploration at its 100%-owned HPM nickel-copper-cobalt property in Quebec, as well as working capital and administrative expenses.
“This is truly an exciting time for the company as we are preparing to move forward with our summer drill program at our HPM nickel-copper-cobalt project in Quebec - where our focus will be on developing the Barre de Fer Zone towards a maiden resource and developing a robust portfolio of high-priority, de-risked targets for future drilling,” Murchison Minerals CEO Troy Boisjoli said in a statement.
READ: Murchison Minerals to raise up to $5.5M for exploration at its HPM nickel-copper-cobalt property in eastern Quebec
Murchison noted that as a result of their participation, Gentile now owns 6.9% of the company's issued and outstanding common shares, while Johnson made an additional C$715,000 investment to maintain his current ownership in Murchison at about 30%.
It added that SIDEX, an initiative of the Québec government and the Fonds de Solidarité FTQ, has increased its holding in Murchison by acquiring a further 2,222,222 company units as part of the private placement.
The private placement consisted of 10,166,666 hard dollar company units, at a price of $0.09 per unit, 20,195,002 Quebec flow-through (FT) units, at a price of $0.105 per unit, and 16,557,954 Quebec Charity flow-through (QCFT) units, at a price of $0.14 per unit.
Each unit was comprised of one Murchison common share plus one-half of a common share purchase warrant, while each FT and QCFT units were comprised of one flow-through company common share and one-half of a warrant, with each whole warrant being exercisable to acquire one additional Murchison common share, at a price of $0.18 per share, for a period of 18 months expiring December 30, 2023.
Finder's fees and finder's warrants totaling C$149,150 and 1,230,471, respectively, were paid in relation to the private placement, according to the company.
All securities issued as part of the offering are subject to a four-month hold period until October 31, 2022, as well as final acceptance of the TSX Venture Exchange.
As well, Murchison reported that based on the preliminary modelling at the BDF Zone, the company is now in a position to move forward with resource expansion and delineation during this summer's drill program at the BDF Zone.
The company added that it will be leveraging the past work competed at the BDF Zone - which until now, had not previously been modelled - to significantly advance the project forward.
The summer exploration program will also consist of a prospecting component, where prospecting crews will be in the field mapping and evaluating high-priority targets defined by previous and ongoing aerial EM surveys, Murchison said.
Murchison Minerals is a Canada‐based exploration company focused on nickel-copper-cobalt exploration at the 100% owned HPM project in Quebec and the exploration and development of the 100% owned Brabant Lake zinc‐copper‐silver project in north‐central Saskatchewan.
The company also holds an option to earn 100% interest in the Barraute VMS exploration project also located in Quebec, north of Val d'Or.
Contact Sean at sean@proactiveinvestors.com