VANCOUVER, BC, July 20, 2020 /CNW/ - Boreal Metals Corp.
("Boreal" or the "Company")
(TSXV: BMX) is pleased to announce a non-brokered private placement
of up to 36,363,636 units of the Company ("Units") at
$0.055 per unit for total gross
proceeds of up to approximately $2,000,000 (the "Private Placement"). Each
Unit will consist of one common share (a "Common Share") and
one common share purchase warrant (a "Warrant"), with each
Warrant being exercisable for one additional Common Share at a
price of $0.11 for a period of 24
months from the date of issue.
In connection with the Private Placement, the Company will pay
finders' fees to certain arm's length finders
("Finders") consisting of: (a) cash of up to 8% of
proceeds raised under the Private Placement from subscribers
introduced to the Company by such Finders; and (b) warrants in an
amount equal to 8% of the number of Units acquired by subscribers
introduced to the Company by such Finders. All securities issued
under the Private Placement will be subject to statutory hold
periods expiring four months and one day from the issue
date.
The proceeds of the Private Placement will primarily be
used to continue exploration and drilling at the
Company's 100% owned Gumsberg property, specifically
to continue expansion of the newly discovered high-grade,
mineralized ore body at the historic Östra Silvberg polymetallic
target, where Boreal intersected silver rich, high-grade
mineralization in recent drill programs from 2017-2019 (See Boreal
News Releases dated Feb. 28, 2018,
Jan. 28, 2019 and March 4, 2019). Some funds will also be
used to explore elsewhere on the Gumsberg project area and for
general working capital purposes. The Private Placement is
subject to TSX Venture Exchange approval.
"Boreal will be quite active in its JV
exploration programs with Boliden at its Burfjord copper-gold
project in Norway, but this
private placement will allow for continued advancement of our
flagship Gumsberg project. We are excited to continue drilling at
Östra Silvberg, and to follow up the impressive discoveries of new
zones of silver rich mineralization adjacent to the historic
mine," stated Patricio
Varas, Chairman and CEO of the Company.
About Boreal Metals Corp.
Boreal is a mineral exploration company focused on the discovery
of silver, zinc, copper, and gold deposits in exceptional,
historical mining project areas spanning Sweden and Norway. The Company aims to
discover new economic mineral deposits in known mining districts
that have seen little or no modern exploration techniques.
The Company is led by an experienced management team and technical
team, with successful track records in mineral discovery, mining
development and financing.
Qualified Person
Daniel MacNeil, P.Geo, a
Qualified Person as defined by National Instrument 43-101
Standards of Disclosure for Mineral Projects, has read and
approved all technical and scientific information contained in this
news release. Mr. MacNeil is Vice President Exploration for
Boreal.
On behalf of Boreal Metals
Corp.
Patricio Varas, Chief Executive
Officer and CEO
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Cautionary Note Regarding Forward-Looking Statements
This news release contains certain statements that may be deemed
"forward–looking statements". Forward–looking statements are
statements that are not historical facts and are generally, but not
always, identified by the words "expects", "plans", "anticipates",
"believes", "intends", "estimates", "projects", "potential" and
similar expressions, or that events or conditions "will", "would",
"may", "could" or "should" occur. Forward-looking statements
may include, without limitation, statements relating to future
outlook and anticipated events, such as the successful completion
of the Private Placement or the anticipated use of proceeds of the
Private Placement by the Company. Although Boreal believes the
expectations expressed in such forward–looking statements are based
on reasonable assumptions, such statements are not guarantees of
future performance, are subject to risks and uncertainties, and
actual results or realities may differ materially from those in the
forward–looking statements. Such material risks and
uncertainties include, but are not limited to, Boreal's ability to
raise sufficient capital to maintain its mineral tenures and
concessions in good standing, to explore and develop its projects,
to repay its debt and for general working capital purposes; changes
in economic conditions or financial markets; the ability of Boreal
to obtain the necessary permits and consents required to explore,
drill and develop the projects and if obtained, to obtain such
permits and consents in a timely fashion relative to Boreal plans
and business objectives for the projects; the general ability of
Boreal to drill test its projects and find mineral resources; if
any mineral resources are discovered or acquired, the Company's
ability to monetize any such mineral resources; and changes in
environmental and other laws or regulations that could have an
impact on the Company's operations. Forward–looking statements are
based on the reasonable beliefs, estimates and opinions of Boreal
management on the date the statements are made. Except as required
by law, Boreal undertakes no obligation to update these
forward–looking statements in the event that management's beliefs,
estimates or opinions, or other factors, should change.
SOURCE Boreal Metals