Murchison Minerals Announces $5,500,000 Non-Brokered Private Placement with Continued Support of Strategic Investor Michael Gentile and Largest Shareholder Donald K. Johnson
June 2nd, 2022 (Burlington, ON): Murchison Minerals Ltd. (“Murchison” or the “Company”) (TSXV: MUR, OTCQB: MURMF) is pleased to announce that, subject to all regulatory approvals, it intends to raise up to $5,500,000 in a non-brokered private placement (the “Offering”), with the proceeds directed towards drilling at the Company’s 100%-owned HPM nickel-copper-cobalt property in Eastern Quebec, working capital and administrative expenses.
It is anticipated that strategic investor Mr. Michael Gentile and Murchison’s largest shareholder Mr. Donald K. Johnson will participate in the Offering maintaining their current ownership positions.
Pursuant to the Offering, the Company will issue Hard Dollar units (“HD Units”) at a price of $0.09 per HD Unit, Quebec flow-through units (“QFT Units”) at a price of $0.105 per QFT Unit and Quebec Charity flow-through units (“QCFT Units”) at a price of $0.14 per QCFT Unit, in any combination to raise aggregate gross proceeds of up to $5,500,000.
Each HD Unit will be comprised of one common share of the Company (a “Common Share”) and one-half of a common share purchase warrant (each whole warrant, a “Warrant”) and each QFT Unit and QCFT Unit will be comprised of one flow-through common share of the Company (a “FT Common Share”) and one-half of a Warrant. Each whole Warrant shall be exercisable to acquire one additional Common Share at a price of $0.18 for a period of 18 months from the date of closing of the Offering.
A finder’s fee may apply to a portion of the proceeds raised under the Offering in the amount of 6% cash and 6% finders’ warrants. All securities issued pursuant to the Offering will be subject to a four month hold period from the date of issue.
In the event that the volume weighted average price (“VWAP”) of the Common Shares on the TSX Venture Exchange (the “TSXV”) is greater than CDN$0.225 for 20 consecutive trading days, the Company may give notice to the holders of the Warrants that the expiry time of the Warrants has been accelerated and the Warrants will expire on the 30th business day following the date of such notice.
It is anticipated that Donald K. Johnson, a director and control person of the Company will acquire a certain number of Units under the Offering to maintain his current ownership at around 30%. Any such participation will be considered a “related party transaction” as defined under Multilateral Instrument 61-101 (“MI 61-101”). It is anticipated that the transaction will be exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 based on a determination that the securities of the Company are listed on the TSXV and that the fair market value of the Offering, insofar as it involves interested parties, will not exceed $2,500,000 or 25% of the market capitalization of the Company. The Offering was approved by all independent directors of the Company.
HPM Summer Drill Program
Based on the Preliminary modelling at the BDF Zone, (April 4th news release) 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. Murchison will be leveraging the past work competed at the BDF Zone – which until now, had not previously been modelled – during this summer’s drill program to significantly advance the project forward. Consequently, the Company will be releasing an HPM exploration update in the near-term, outlining the use of proceeds from the Offering. With the objective of drilling the high-grade nickel-copper cobalt BDF Zone which has the potential to define a near-surface mineral resource.
Strategic Investor Michael Gentile, CFA
Mr. Gentile is considered one of the leading strategic investors in the junior mining sector, owning significant positions in over 15 small-cap mining companies. Mr. Gentile is currently a strategic advisor to Arizona Metals (AMC-V) and Geomega Resources (GMA-V) as well as being a director of Northern Superior Resources (SUP-V), Roscan Gold (ROS-V), Radisson Mining Resources (RDS-V) and Solstice Gold (SGC-V). Mr. Gentile recently co-founded Bastion Asset Management, an investment management firm based out of Montreal, Quebec and was previously a Senior Portfolio Manager with Formula Growth Limited.
Mr. Troy Boisjoli, Murchison Minerals President, CEO, and Director comments:
“Murchison is very pleased to have the continued support of strategic investor, Mr. Michael Gentile, and Murchison’s largest shareholder and Director Mr. Donald K Johnson. 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.”
About Murchison Minerals Ltd.
TSXV: MUR | OTCQB: MURMF
Murchison is a Canadian‐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. Murchison currently has 171.3 million shares issued and outstanding.
Murchison Minerals