VANCOUVER, BC, May 3, 2021 /CNW/ - Metallis Resources
Inc. (TSXV: MTS) (OTCQB: MTLFF) (FSE: 0CVM) (the "Company"
or "Metallis") announces the Company has closed the first tranche
(the "First Tranche") of its previously announced non-brokered
placement (the "Financing") of up to $3.5
million (See News Release dated April
23rd, 2021). The First Tranche has resulted in
the issuance of 5,970,000 flow-through units for gross proceeds of
$2,985,000 and 761,111
non-flow-through units for gross proceeds of $342,500.
Metallis' President and CEO Fiore
Aliperti stated "The closing of this first tranche is a
critical step in preparation for our 2021 drill season, and we
expect to close the remainder within the next week. As previously
reported, all our key exploration contracts have now been signed
and the geological team is finalizing the last of the data analysis
that will help detail the 3D model of the Cliff Porphyry Corridor."
He went on to add "the remaining task will be to hold a series of
drill plan meetings. These meetings will involve the Technical
Advisory Board inclusive of recent additions Charlie Greig and Dr. Michelle Campbell. They will help establish the
initial drill targets of the 2021 drill program. It is our plan to
be on the ground in June this year which is a short time
away."
Flow-through units consist of one flow-through common share and
one-half of one non-flow-through non-transferable share purchase
warrant with each full warrant exercisable at $0.70 per share for two years. Non-flow through
units consist of one common share and one-half of one
non-transferable share purchase warrant with each full warrant
exercisable at $0.65 per share for
two years. The flow-through shares will qualify as "flow-through
shares" for the purpose of the Income Tax Act (Canada) (the "Act"). The proceeds of the
flow-through private placement will be incurred on "Canadian
exploration expenses" (within the meaning of the Act). The Company
will renounce these expenses to the purchasers with the effective
date no later than December 31, 2021,
and as required under the Act.
The proceeds from the non-flow-through units will be used for
both exploration and general corporate purposes.
Aventus Capital Corp. acted as a finder in association with
certain subscriptions in the First Tranche. The Company will pay
Aventus $12,000 in cash finders fees
and will issue 24,000 finder's warrants exercisable at $0.50 per share for two years from the date of
issuance.
Shares and warrants issued on closing will be subject to a
trading hold period expiring four months plus one day from the date
of issuance.
About the Kirkham Property
The wholly owned 106 sq. km Kirkham Property is located about 65
km north of Stewart, B.C., in the
heart of the Golden Triangle's prolific Eskay Camp. The Property is prospective for
multiple mineral deposit types and is located along a strategic
geological boundary – the "Red-line" exposed on the western margin
of the Eskay Rift system in the Golden Triangle, northwestern
British Columbia.
The Kirkham Property is contiguous to Garibaldi Resources'
E&L Nickel Mountain Project in the north and Eskay Mining Corp.
to the east. The property is within 12 km of the Eskay Creek
mine while the eastern border is within 15 - 20 km of Seabridge
Gold's KSM deposits and Pretium Resources' Brucejack mine.
About Metallis
Metallis Resources Inc. is a Vancouver-based company focused on the
exploration of gold, copper, nickel, and silver at its 100%-owned
Kirkham Property situated in northwest British Columbia's Golden Triangle.
Metallis trades under the symbols MTS on the TSX Venture Exchange,
MTLFF on the OTCQB Exchange, and 0CVM on the Frankfurt Stock
Exchange. The Company currently has 51,966,544 common shares issued
and outstanding, and which reflects the closing of the First
Tranche.
On behalf of the Board of Directors:
/s/ "Fiore Aliperti"
Chief Executive Officer, President and Director
CAUTION REGARDING FORWARD-LOOKING STATEMENTS
This Press Release may contain statements which constitute
'forward-looking' statements, including statements regarding the
plans, intentions, beliefs and current expectations of the Company,
its directors, or its officers with respect to the future business
activities and operating performance of the Company. The words
"may", "would", "could", "will", "intend", "plan", "anticipate",
"believe", "estimate", "expect" and similar expressions, as they
relate to the Company, or its management, are intended to identify
such forward-looking statements. Investors are cautioned that any
such forward-looking statements are not guarantees of future
business activities or performance and involve risks and
uncertainties, and that the Company's future business activities
may differ materially from those in the forward-looking statements
because of various factors. Such risks, uncertainties and factors
are described in the periodic filings with the Canadian securities'
regulatory authorities, including quarterly and annual Management's
Discussion and Analysis, which may be viewed on SEDAR at
www.sedar.com. Should one or more of these risks or uncertainties
materialize, or should assumptions underlying the forward-looking
statements prove incorrect, actual results may vary materially from
those described herein as intended, planned, anticipated, believed,
estimated, or expected.
Although the Company has attempted to identify important risks,
uncertainties and factors which could cause actual results to
differ materially, there may be others that cause results not to be
as intended, planned, anticipated, believed, estimated, or
expected. The Company does not intend, and does not assume any
obligation, to update these forward-looking statements.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release. The TSX-V Stock Exchange has neither approved nor
disapproved the contents of this news release.
SOURCE Metallis Resources Inc.