Murchison Minerals Closes Early Warrant Incentive Program
April 19th, 2022 (Burlington, ON): Murchison Minerals Ltd. (“Murchison” or the “Company”) (TSXV: MUR, OTCQB: MURMF) is pleased to report that 10,657,500 warrants were converted by warrant holders during the Early Warrant Incentive Program (the “Program”) announced on March 17, 2022, for gross proceeds of $1,278,906. The Program ended April15, 2022.(Haut-Plateau de la Manicouagan) Project, located in Quebec. Based on these results the Company is advancing a strategy to expand and delineate the BDF Zone and surrounding prospective areas during this summer’s planned drill program. In support of these plans, the Company is also pleased to announce that it has awarded the summer drilling contract, on the HPM property, to Logan Drilling.
The Program was designed to encourage the early exercise of up to 27,118,788 outstanding warrants (the “Warrants“) all exercisable at $0.12 for common shares of the Company (“Common Shares“). A total of 2,005,000 from the 5,000,000 Warrants expiring on September 5, 2022, and 8,652,550 from the 22,118,788 Warrants expiring on October 21, 2022, were exercised.
As part of the Program, Murchison issued 5,328,775 incentive warrants entitling the holders to purchase one additional Common Share until April 15, 2023, at a price of $0.18. The incentive warrants are subject to a four month hold period from the date of issuance ranging from July 24, 2022, to August 15, 2022.
Mr. Donald K Johnson, Director and largest shareholder of Murchison, Mr. Troy Boisjoli, President and CEO and Jean-Charles Potvin, Executive Chairman participate in the Program and exercised an aggregate 9,436,550 warrants for gross proceeds of $1,132,386.
The exercise of warrants by Mr. Johnson, Mr. Boisjoli and Mr. Potvin constitutes a “related party transaction” as defined in Multilateral Instrument 61-101 – Protection of Minority Securityholders in Special Transactions (“MI 61-101”), as insiders of the Company acquired an aggregate 9,436,550 common shares following the exercise of warrants and acquire 4,718,275 new warrants in the process. The Company is relying on the exemptions from the valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101, as the fair market value of the participation in the Program by insiders does not exceed 25% of the market capitalization of the Company, as determined in accordance with MI 61-101. The Company will file a material change report in respect of the related party transaction following the exercise of warrants under the Program.
About Murchison Minerals Ltd. (TSXV: MUR)
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 170.5 million shares issued and outstanding.