/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES
OR DISSEMINATION IN THE UNITED STATES/
ROUYN-NORANDA, QC,
Dec. 23, 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 1,000,000 Quebec
"flow-through" common shares at a price of $0.125 per share and 400,833 units at a price of
$0.12 per unit, for aggregate gross
proceeds to X-Terra Resources of $173,100. Each of the 400,833 units is comprised
of one federal "flow-through" 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
$0.17 for a period of 18 months 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.
Additional closings of the private placement may be held until
December 31, 2019, subject to a
maximum of 4,166,666 additional units at a price of $0.12 per unit and a maximum of 3,200,000
additional Quebec "flow-through"
common shares at a price of $0.125
per share, for total maximum gross proceeds of $900,000.
Michael Ferreira, President and
Chief Executive Officer of X-Terra states, "This top up financing
will strengthen X-Terra's cash position as we move towards the
inaugural drill program over the Northwest and Grog properties
scheduled to begin in early January. It will also enable X-Terra to
move forward with a more aggressive exploration campaign over its
Québec properties, more specifically, its 100% owned Troilus East
property located adjacent to Troilus Gold's property which hosts a
new mineral resource estimate of 4.71 million indicated AuEq (gold
equivalent) ounces and 1.76 million inferred AuEq ounces (see
Troilus Gold's news release dated Nov. 12,
2019)".
In connection with the private placement, X-Terra Resources paid
cash commissions to two securities dealers in an aggregate amount
of $10,098. In addition, X-Terra
granted finders' options to Gravitas Securities Inc. entitling it
to acquire up to 32,067 additional common shares of X-Terra
Resources at a price of $0.12 per
share for a period of 18 months.
As a result of the first closing of the private placement, there
are 55,595,053 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 April 21, 2020.
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.