Brixton Metals Corporation (TSXV: BBB | OTCQB: BBBXF) has announced a non-brokered private placement of common shares in the capital of Brixton by a wholly owned subsidiary of BHP Group Limited, with the goal of advancing the company’s Thorn Project located in Northwest British Columbia, Canada. The Thorn Project is situated within the traditional territory of the Taku River Tlingit and Tahltan First Nations.
Pursuant to the private placement, BHP will acquire the number of common shares that will represent 19.9% of the issued and outstanding Common Shares, on an undiluted basis, following completion of the private placement at a price of C$0.18 per share.
The exact number of common shares issued, and proceeds raised, by the company will depend on whether Crescat Portfolio Management LLC elects to exercise its pre-existing rights to participate on a pro rata basis in equity financings by the company to maintain its current interest in the common shares, which based on public filings is approximately 13.47%.
If Crescat does not elect to exercise its participation rights, then 74,363,172 common shares will be issued to BHP for aggregate gross proceeds of C$13.4M.
If Crescat elects to exercise its participation rights in full, then it is expected that 77,354,983 common shares will be issued to BHP for aggregate gross proceeds of C$13.9M and 12,042,415 Common Shares will be issued to Crescat for aggregate gross proceeds of C$2.2M.
The private placement is subject to TSX Venture Exchange approval and other customary closing conditions and is expected to close in mid-November. No finder’s fee was paid in connection with the Private Placement.
Chairman & CEO, Gary Thompson, stated, “We are excited to welcome BHP, a leading global resource company, to the Brixton share register and believe their investment speaks to the strength of the Thorn Project and Brixton’s geological team. We believe that the Thorn Project has the potential to help fill the immense demand for critical metals, such as copper, as our economy transitions to a sustainable low carbon and electrified world.”
Brixton intends to use the proceeds of the private placement for exploration expenditures at the company’s Thorn Project, and the terms of the investment agreement require that at least 90% of the proceeds from the private placement be used in respect of the Thorn Project.
For further information please visit: https://brixtonmetals.com/
