VANCOUVER, BC, Aug. 14, 2020 /CNW/ - Boreal Metals Corp.
("Boreal" or the "Company")
(TSXV: BMX) is pleased to announce that it has closed its
previously announced non-brokered private placement (the
"Private Placement") with a lead order from Palisades
Goldcorp Ltd., and has also closed its previously announced shares
for debt transactions (the "Shares for Debt
Transactions").
Private Placement
Under the Private Placement, 47,155,376 units of the Company
("Units") were issued at $0.055 per Unit for total gross proceeds to
Boreal of $2,593,545.69. Each Unit
consists 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.
All securities issued under the Private Placement are subject to
a statutory hold period expiring four months and one day from the
issue date. The TSX Venture Exchange has conditionally approved
the Private Placement, subject to customary final
filings.
In connection with the Private Placement, the Company paid
certain arm's length finders, finders' fees totaling $18,480 and 336,000 Units.
The proceeds of the Private Placement will be used to fund
exploration, including drilling activities, at the Company's 100%
owned Gumsberg property, and for general working capital purposes,
including the payment of management and consulting fees to certain
parties. Advancing the Company's 100% owned, 18,300 hectare
Gumsberg property remains the Company's primary objective. Boreal
intends to continue drilling the Östra Silvberg prospect and plans
to expand the 2019 Östra Silvberg South Discovery (News Release
July 9, 2019). Drilling at Östra
Silvberg by Boreal between 2017 and 2019 returned significant
high-grade intercepts, including 10.94 metres of 656.7 g/t silver,
16.97% zinc, 8.52% lead and 0.76 g/t gold, as well as 11.01 metres
of 275 g/t silver, 7.45% zinc, 2.65% lead and 0.77 g/t
gold.
Shares for Debt Transactions
Pursuant to the Shares for Debt Transactions, the Company has
issued an aggregate 2,305,273 Units to certain parties as
described below, and an aggregate 7,368,304 Units to EMX Royalty
Corporation ("EMX").
Pursuant to the Shares for Debt Transactions, Patricio Varas, Executive Chairman and CEO of
the Company, received 1,650,000 Units in repayment of certain funds
advanced to Boreal for operational expenses. In addition, Johannes
Holzäpfel, of EMX, received 178,000 Units, and Richard Mills, of Northern Venture Group Ltd.,
received 477,273 Units; in all cases, as consideration for certain
past services rendered to Boreal.
The 7,368,304 Units issued to EMX facilitated: (i) an immediate
reduction in the amount of debt owed by the Company to EMX from
$800,000 plus accrued interest and
fees, to $482,113.28, (ii) a 6-month extension of the maturity
date applicable to the remaining balance of such debt, to
May 25, 2021, and (iii) EMX
maintaining its current 12.89% ownership interest in the Company on
a non-diluted basis, following completion of the Private Placement
and Shares for Debt Transactions.
The Units issued pursuant to the Shares for Debt Transactions
were issued at a deemed price of $0.055 per Unit, with each Unit consisting of one
Common Share and one Warrant bearing the same terms as the Warrants
issued on the Private Placement. All securities issued under the
Shares for Debt Transactions are subject to a four month hold
period from the date of issuance.
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 experienced management and technical teams,
with successful track records in mineral discovery, mining
development and financing.
About Palisades Goldcorp.
Palisades Goldcorp is Canada's
new resource focused merchant bank. Palisades' management
team has a demonstrated track record of making money and is backed
by many of the industry's most notable financiers. With
junior resource equities valued at generational lows, management
believes the sector is on the cusp of a major bull market
move. Palisades is positioning itself with significant stakes
in undervalued companies and assets with the goal of generating
superior returns.
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, Executive
Chairman 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 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