/NOT FOR DISTRIBUTION IN THE UNITED
STATES OR DISSEMINATION THROUGH A U.S. NEWSWIRE
SERVICE/
VANCOUVER, BC, Oct. 20,
2022 /CNW/ - Essex Minerals Inc. (the
"Company") (TSXV: ESX) (OTCQB: ESXMF) is pleased to
announce that further to its news release of September 21, 2022, it has closed the final
tranche of its non-brokered private placement (the
"Financing"), raising an aggregate of $880,000 in gross proceeds through the issuance
of 44,000,000 units (the "Units") at a price of $0.02 per Unit. Each Unit consists of one
common share and one share purchase warrant, with one whole warrant
entitling the holder to purchase one additional common share (a
"Warrant Share") of the Company at a purchase price of
$0.05 per Warrant Share for a period
of 60 months from the date of closing.
A company associated with the Company's CEO and President
subscribed for 955,000 units.
The Company paid finder's fees in connection with the placement
comprising an aggregate of $24,290
and 1,214,500 finder's warrants to Canaccord Genuity Corp and
$7,000 and 350,000 finder's
warrants to Primary Capital Inc. Each finder's warrant is
exercisable into one common share at $0.05 for 60 months.
The finder's warrants are subject to a hold period, which will
expire as follows:
|
Number of Finder's
Warrants
|
Expiry date for hold
period
|
|
1,141,000
|
January 29,
2023
|
|
350,000
|
January 30,
2023
|
|
350,000
|
February 8,
2023
|
|
73,500
|
February 20,
2023
|
All of the Units are subject to a hold period, which will expire
as follows:
|
Number of
Units
|
Expiry date for hold
period
|
|
16,300,000
|
January 29,
2023
|
|
20,925,000
|
January 30,
2023
|
|
3,750,000
|
February 8.
2023
|
|
3,025,000
|
February
20,2023
|
The net proceeds from the Financing will be used by Essex for general working capital purposes,
its mineral project and royalty generative activities and
exploration expenditures on its existing mineral projects.
Approximately 15% of the proceeds will be utilised in payments
to officers and directors as remuneration for management of the
Company in the normal course of business, approximately 5% of the
proceeds will be utilised in investor relations activities,
including a contract renewal with the Company's existing investor
relations consultant Harbor Access LLC, and the balance of the
proceeds will be utilised in the Company's mineral project and
royalty generative activities, costs related to the Company's
existing mineral properties and general working capital. The
Company is currently examining a number of new exploration and
royalty acquisition opportunities, but no specific expenditure
representing more than 10% of the gross proceeds has currently been
agreed.
Paul Loudon
CEO & Director
www.essexminerals.com
Neither the 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.
The securities offered have not been, and will not be,
registered under the U.S. Securities Act of 1933, as amended (the
"U.S. Securities Act"), or any U.S. state securities laws, and may
not be offered or sold in the United
States or to, or for the account or benefit of, U.S. persons
(as defined under the U.S. Securities Act) absent registration or
any applicable exemption from the registration requirements of the
U.S. Securities Act and applicable U.S. state securities laws. This
news release shall not constitute an offer to sell or the
solicitation of an offer to buy securities in the United States, nor shall there be any sale
of these securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful.
SOURCE Essex Minerals Inc