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ROUYN-NORANDA, QC, Sept. 27, 2019 /CNW Telbec/ - X-Terra
Resources Inc. (TSXV: XTT) (FRANKFURT: XTR) is pleased to announce
that it has held a first closing of a non-brokered private
placement at which it issued 2,372,727 "flow-through" common shares
at a price of $0.11 per share to
subscribers in Québec and 6,556,250 units at a price of
$0.08 per unit, for aggregate gross
proceeds to X-Terra Resources of $785,500. Each of the 6,556,250 units is
comprised of one common share and one common share purchase
warrant. Each warrant entitles its holder to acquire one additional
common share of X-Terra Resources at a price of $0.13 for a period of three years from the
closing date. X-Terra Resources intends to use the proceeds
from the private placement for exploration on certain of its mining
exploration properties in Québec and New
Brunswick, and for working capital purposes.
Additional closings of the private placement may be held until
October 11, 2019, subject to a maximum of 12,500,000 units at
a price of $0.08 per unit, a maximum
of 2,500,000 "flow-through" common shares at a price of
$0.11 per share to subscribers in
Québec and a maximum of 2,500,000 "flow-through" common shares at a
price of $0.10 per share to
subscribers outside Québec, for total maximum gross proceeds of
$1,525,000.
In connection with the private placement, X-Terra Resources paid
cash commissions to various securities dealers and finders in an
aggregate amount of $23,730. In
addition, X-Terra granted finders' options to Leede Jones Gable
Inc., Canaccord Genuity Corp. and PI Financial Corp. entitling them
to acquire up to an aggregate of 258,272 additional common shares
of X-Terra Resources at a price of $0.13 per share for a period of 18 months.
As a result of the first closing of the private placement, there
are 46,760,698 common shares of X-Terra Resources issued and
outstanding. Under applicable securities legislation, the
securities issued in the private placement are subject to a
four-month hold period, expiring on January 28, 2020.
In other news, X-Terra Resources announces that on April 29, 2019, the Board of Directors amended
the 2014 Stock Option Plan (the "Plan") so as to change it
from a "rolling plan" to a "fixed amount plan". The maximum number
of common shares reserved for issuance under the Plan pursuant to
the exercise of options is now 3,573,170 shares, representing an
increase of 1,281,582 common shares since the last time the Plan
was approved as a "rolling plan" by shareholders on June 28, 2017.
About X-Terra Resources Inc.
X-Terra Resources is a
resource company focused on acquiring and exploring precious metals
and energy properties in Canada.
Forward-Looking Statements
This news release
contains statements that may constitute "forward-looking
information" within the meaning of applicable Canadian securities
legislation. Forward-looking information may include, among others,
statements regarding the future plans, costs, objectives or
performance of X-Terra Resources, or the assumptions underlying any
of the foregoing. In this news release, words such as "may",
"would", "could", "will", "likely", "believe", "expect",
"anticipate", "intend", "plan", "estimate" and similar words and
the negative form thereof are used to identify forward-looking
statements. Forward-looking statements should not be read as
guarantees of future performance or results, and will not
necessarily be accurate indications of whether, or the times at or
by which, such future performance will be achieved. No assurance
can be given that any events anticipated by the forward-looking
information will transpire or occur, including additional closings
of the private placement. Forward-looking information is
based on information available at the time and/or management's
good-faith belief with respect to future events and are subject to
known or unknown risks, uncertainties, assumptions and other
unpredictable factors, many of which are beyond X-Terra Resources'
control. These risks, uncertainties and assumptions include, but
are not limited to, those described under "Financial Instruments"
and "Risk and Uncertainties in X-Terra Resources' Annual Report for
the fiscal year ended December 31,
2018, a copy of which is available on SEDAR at
www.sedar.com, and could cause actual events or results to differ
materially from those projected in any forward-looking statements.
X-Terra Resources does not intend, nor does X-Terra Resources
undertake any obligation, to update or revise any forward-looking
information contained in this news release to reflect subsequent
information, events or circumstances or otherwise, except if
required by applicable laws.
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 the release.
Website: www.xterraresources.com
SOURCE X-Terra Resources Inc.