Emerita Announces Closing of $3 Million Strategic Private Placement by Eric Sprott
February 23 2021 - 6:00AM
Emerita Resources Corp. (“
Emerita” or the
“
Company”) (TSXV: EMO) is pleased to announce that
it has closed its previously announced non-brokered private
placement of 13,636,363 units of the Company (the
“
Units”) at a price of $0.22 per Unit (the
“Offering”).
Each Unit is comprised of one common share of
the Company (a “Common Share”) and one-half of one
Common Share purchase warrant (each whole warrant, a
“Warrant”). Each Warrant is exercisable to acquire
one Common Share (a “Warrant Share”) at a price of
$0.30 per Warrant Share for a period of 24 months from the date
hereof.
Eric Sprott, through 2176423 Ontario Ltd., a
corporation that is beneficially owned by him, acquired 13,636,363
Units pursuant to the Offering for approximate consideration of
$3,000,000. As a result, Mr. Sprott beneficially owns and controls
13,636,363 Common Shares and 6,818,181 Warrants, representing
approximately 10.1% of the issued and outstanding Shares of the
Company on a non-diluted basis and approximately 14.4 % of the
issued and outstanding Common Shares on a partially-diluted basis
assuming exercise of the Warrants acquired hereunder and forming
part of the Units. Prior to the Offering, Mr. Sprott did not
beneficially own or control any securities of the Company.
The Units were acquired by Mr. Sprott for
investment purposes. Mr. Sprott has a long-term view of the
investment and may acquire additional securities of the Company
including on the open market or through private acquisitions or
sell securities of the Company including on the open market or
through private dispositions in the future depending on market
conditions, reformulation of plans and/or other factors that Mr.
Sprott considers relevant from time to time.
A copy of Mr. Sprott's early warning
report will appear on Emerita’s profile on SEDAR and may also
be obtained by calling Mr. Sprott’s office at (416)
945-3294 (200 Bay Street, Suite 2600, Royal Bank Plaza,
South Tower, Toronto, Ontario M5J 2J1).
The proceeds of the Offering will be used to
continue project development work in Spain and for general
corporate purposes. The Company paid finder’s fees of $180,000 in
cash and issued 818,181 non-transferable finder’s warrants
(“Finder’s Warrants”). Each Finder Warrant will entitle the holder
thereof to purchase one Common Share at a price of $0.30 for a
period of 24 months from the date hereof. The Offering is subject
to final approval of the TSX Venture Exchange and the securities
issued under the Offering have a statutory hold period of four
months and one day from today’s date.
About Emerita Resources
Corp.
Emerita is a natural resource company engaged in
the acquisition, exploration and development of mineral properties
in Europe, with a primary focus on exploring in Spain. The
Company’s corporate office and technical team are based in Sevilla,
Spain with an administrative office in Toronto, Canada.
For Further Information,
Contact:
Helia Bento+1 (416) 566-8179 (Toronto)
Joaquin Merino34 (628) 1754 66 (Spain)
info@emeritaresources.com
Cautionary Note Regarding
Forward-looking Information
This press release contains “forward-looking
information” within the meaning of applicable Canadian securities
legislation. Forward-looking information includes, without
limitation, statements regarding the Offering, the use of proceeds
of the Offering and the Company’s future plans. Generally,
forward-looking information can be identified by the use of
forward-looking terminology such as “plans”, “expects” or “does not
expect”, “is expected”, “budget”, “scheduled”, “estimates”,
“forecasts”, “intends”, “anticipates” or “does not anticipate”, or
“believes”, or variations of such words and phrases or state that
certain actions, events or results “may”, “could”, “would”, “might”
or “will be taken”, “occur” or “be achieved”. Forward-looking
information is subject to known and unknown risks, uncertainties
and other factors that may cause the actual results, level of
activity, performance or achievements of Emerita, as the case may
be, to be materially different from those expressed or implied by
such forward-looking information, including but not limited to:
general business, economic, competitive, geopolitical and social
uncertainties; the actual results of current exploration
activities; risks associated with operation in foreign
jurisdictions; ability to successfully integrate the purchased
properties; foreign operations risks; and other risks inherent in
the mining industry. Although Emerita has attempted to identify
important factors that could cause actual results to differ
materially from those contained in forward-looking information,
there may be other factors that cause results not to be as
anticipated, estimated or intended. There can be no assurance that
such information will prove to be accurate, as actual results and
future events could differ materially from those anticipated in
such statements. Accordingly, readers should not place undue
reliance on forward-looking information. Emerita does not undertake
to update any forward-looking information, except in accordance
with applicable securities laws.
This news release does not constitute an
offer to sell or a solicitation of an offer to buy any of the
securities in the United States. The securities have not been and
will not be registered under the United States Securities Act of
1933, as amended (the “U.S. Securities Act”) or any state
securities laws and may not be offered or sold within the United
States or to U.S. Persons unless registered under the U.S.
Securities Act and applicable state securities laws or an exemption
from such registration is available.
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.
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