Private Placement, Non-brokered flow-through, non-flow-through units, closed
Metals Creek Resources Corp. Announces Closing of Non-Brokered Private Placement of Flow-Through and Non Flow-Through Units
Toronto, Ontario - 28 December 2018 - Metals Creek Resources Corp. (“Metals Creek” or the “Company”) (TSXV: MEK) announces that it has closed its recently announced private placement (See news releases dated 19 Dec 2018 and 21 Dec 2018) of flow-through and non flow-through units (the “Private Placement”).
The Company issued 3,534,000 flow-through units at a price of $0.055 per unit (the “FT Units”) for aggregate proceeds of $194,370. Each FT Unit consists of one flow-through common share (the “FT Shares”) and one-half of one non flow-through common share purchase warrant (the “FT Warrants”). Each whole FT Warrant entitles the holder to purchase one additional non flow-through common share of the Company at an exercise price of $0.10 per common share for a period of 24 months from the date of issue. The FT Shares entitle the holder to receive the tax benefits applicable to flow-through shares, in accordance with provisions of the Income Tax Act (Canada).
The Company issued 4,840,000 non flow-through units at a price of $0.05 per unit (the “NFT Units”) for aggregate proceeds of $242,000. Each NFT Unit consists of one non flow-through common share and one non flow-through common share purchase warrant (the “NFT Warrants”). Each NFT Warrant entitles the holder to purchase one additional non flow-through common share of the Company at an exercise price of $0.10 per common share for a period of 24 months from the date of issue.
In connection with the private placement, the company paid finders' fees equal to $27,404.30 in cash and 485,840 common share purchase warrants issued on the same terms as the FT Warrants and the NFT Warrants, as permitted by the policies of the TSX Venture Exchange. All securities issued pursuant to the Private Placement, including certain insider participation in the Private Placement, are subject to a four-month hold period.
The proceeds raised from the FT Units will be used for Canadian Exploration Expenses (within the meaning of the Income Tax Act (Canada)), with the Company using its best efforts to ensure that such Canadian Exploration Expenses qualify as a “flow-through mining expenditure” for purposes of the Income Tax Act (Canada), related to the exploration of the Company’s exploration projects.
About Metals Creek Resources Corp.
Metals Creek Resources Corp. is a junior exploration company incorporated under the laws of the Province of Ontario, is a reporting issuer in Alberta, British Columbia and Ontario, and has its common shares listed for trading on the Exchange under the symbol “MEK”. Metals Creek has earned a 50% interest in the Ogden Gold Property, including the former Naybob Gold mine, located 6 km south of Timmins, Ontario and has a 8 km strike length of the prolific Porcupine-Destor Fault (P-DF) that stretches between Timmins, Ontario and Val d’Or, Quebec. Metals Creek also has an option agreement with Quadro Resources on Metals Creeks and Benton Resources Staghorn Gold Project in Newfoundland as well as two option agreements with Anaconda Mining Inc. on Metals Creek’s Jacksons Arm and Tilt Cove Properties also in Newfoundland. The company also has an option agreement on its Clarks Brook property with Sokoman Iron Corp. and is engaged in the identification, acquisition, exploration and development of other mineral resource properties, and presently has mining interests in Ontario, Yukon and Newfoundland and Labrador. Information concerning the Corporation is contained in documents filed by the Corporation with securities regulators, available under its profile at www.sedar.com.For further information, please contact:
Alexander (Sandy) Stares, President and CEO
Metals Creek Resources Corp