Brixton Metals Corp (TSXV: BBB | OTCQB: BBBXF) has closed the first tranche of a non-brokered private placement for combined aggregate proceeds of C$3,513,538.00.
C$3,436,048.00 of the placement was raised through the issuance of 21,475,300 flow-through (FT) units a price of $0.16 per unit. Each FT unit will consist of one common share and one half of a common share purchase warrant, each whole warrant being exercisable for an additional common share of the company for $0.20 for 24 months from the date of issuance of the FT Units. The FT units will also entitle the holder to receive the tax benefits applicable to flow-through shares, in accordance with the provisions of the Income Tax Act (Canada).
The remaining C$77,490.00 was raised through the issuance of 574,000 units at a price of C$0.135. Each unit consists of one common share and one common share purchase warrant, with each whole warrant being exercisable for an additional common share of the company for C$0.20 for 24 months from the date of issuance of the units.
Brixton’s current largest shareholder, Crescat Capital, has subscribed for an aggregate of 11,111,112 units, which will include part of the second tranche of the offering.
In connection with the closing of the First Tranche Private Placement, the company also issued 1,322,958 broker warrants exercisable at a price of C$0.16 for 24 months from the date of issuance and paid cash finders’ fees in the aggregate amount of C$210,812.28 to GloRes Securities Inc. and Accilent Capital Management Inc.
The First Tranche Private Placement forms a part of a larger offering for an aggregate total of up to C$5,250,000.00, and company reserves the option to increase the size of its offering of units by up to 20%, subject to regulatory approval.
The second tranche for the balance of the offering is expected to close on or about 15 September 2022.
The aggregate gross proceeds raised from the FT units will be used for general exploration expenditures on the company’s Thorn copper-gold-silver-molybdenum Project, located in British Columbia. These expenditures will qualify as “flow through mining expenditures” under the Income Tax Act (Canada).
The net proceeds from the smaller unit offering, while not qualifying as “flow through mining expenditures” will also be used to fund exploration at the Thorn Project, and for working capital and general corporate purposes.
To find out more, visit: https://brixtonmetals.com/
